The closing bell. Have a great weekend, and well see you next week. And it is 4 00 on wall street. Do you know where your money is . Hi, everybody. Welcome back to the closing bell. Im Maria Bartiromo on the floor of the new york stock exchange. The major averages closing at a second straight week of gains today on wall street. Fractional moves to the upside. Take a look at how which ear settling out for a friday afternoon on wall street. The Dow Jones Industrial average up about 17. 5 points, fractional move, 13,488. Got the big banks reporting earnings next week. A little bit of buying and a handful of banks at the end of the day today. Took the market off of the lows. Nasdaq composite picks up about four points at the close, 3125. Last trade on the nasdaq. S p 500, close but no cigar on the standard poors, down just a fraction. Straight to the market action. Back with me once again Michael Pento from Pento Portfolio Strategies and dan veru from palisades capital and michael from Capital Management and were going to get right to it. Let me ask you, michael yosikami, look all around the world for places for your money and certainly have been a bull on stocks. Tell me how you see this market going into 2013. Good year, we have europe finally stabilizing. I think that david was righteror earlier, david darst. We need earnings to get a little bit better because well be weak in terms of gas for this rally. Just got back from asia, got back from china, singapore, philippines, the activity in asia is starting to pick up as evidenced by the yearend numbers coming out of china, so im fairly positive Going Forward into this year. We have a lot of things that seem to be going right, as long as the government doesnt screw it up. As long as the government doesnt screw it up. Well, we do have the debt ceiling debate in about a month. When you say screw it up. Thats what i mean. You mean a fight . A big fight. Thats what i mean. The last thing that we need is we dont need the government in there trying to kill sentiment. We we absolutely need sending cuts. I saw you almost fell out of your chair when one of the previous guests said we dont have a spending problem in this country. We certainly need to get more fiscal restraint, but we cannot have the Government Holding sentiment hostage, and that really is an incredibly negative force that cannot happen this year if were looking to have the market move forward. Dan, let me bring you into the conversation here, the chief executive officer here. How are you allocating capital . Doing it stock by stock. We think the market is on pretty stable ground right here, though when seagulls get together its called a flock but when bad boons get together its called a bad congress so thats something to worry about when you get closer to the next phase of the fiscal cliff discussion and global pmis are improving, stay pro cyclical, the again see and wyoming railroad continues to do well, tick symbol qgr, manitr oy s, maker of cranes, both stocks wellpositioned this year. Ben willis, in terms of the broad economic landscape, thats the fundamental underpinnings, earnings, Economic Growth what. Are you expecting . I believe that the market will trend higher. Right now were at kind of a crosscurrents between technical analysts pointed out yesterday suggesting a top of about 1 above us right now before we retrench. That doesnt mean we dont go g forward from a pullback on a technical basis, and as we just heard i believe if you believe that the global pmi will continue to see are improving. That tells you that the investments that were seeing into the basic material groups, the fertilizers, et cetera, are telling you that the World Economy is improving and the risk portfolio is going to be Interest Rate risk so it youll have an opportunity to buy stocks a little bit cheaper. But i believe thiill the place to be. Maria, also, theres the money flow issue cannot be ignored. For the first time were starting to see equity flows. Maybe its the worst possible opportunity, right, because the market has already gone up 100 , but all this money thats been sitting in the cash, thats been sitting in cash, if that money gets any conviction that 2013 is going to be positive, youre going to see a flood of money coming out of 0 money market, negative 3 return when you factor in inflation. I think that will drive the equity market higher as well. You know, ben, youve got a great Vantage Point to see the flow, and i guess what ive been talking about in recent weeks is the fact that the fundamentals really havent changed all that much. Okay, yes, housing has turned. Weve got 3. 6 trillion on balance sheets, not necessarily moving anywhere but its there on the sidelines, and yet this market keeps going higher because of this Interest Rate environment, because of the easy money from central bankers. Do you still see that kind of conviction on on the part of big buyers . Yes, i do, and i think as we said, the global p myois telling you that were coming from a dismal place. If you bag back to the fiscal collapse that we went through worldwide, particularly i look to china, for the impact that china continues to have on the global economy. The United States is again demonstrating, may not be the growth rate that we want, but it is in fact heading in the right direction which is why the asset class of exsis should come back into favor. Weve been out of favor for years at this point. The weekly money flows we just saw, the first time weve seen positive growth. Exactly. I think that money has been spent quite frankly so thats a tough trade, but at this particular point market has digested what its going to digest. Put in a great first two weeks of january, and i believe the money flows should and will continue into the United States equity markets. Right. And the bric nations for that nation. Regardless of the backdrop, right, Michael Pento . That was to me. I wanted to say something. You cant ignore the booming money supply, mzm and growing 12 per annum, but one of the cornerstones of real and solid growth is a sound and stable currency, and when you have an idea floating out there of a 1 trillion coin that does not serve to underwrite the strength of our currency and our economy, and i finally figured out why jack lews signature has all those loops. They are actually zeros and thats how much hes going to add to our debt. You dont know that for sure. Were going to have that debate on the debt ceiling in the next month. You dont think were going to see any spending cuts . We have been inculcated throughout our history that they will increase the debt ceiling without ever addressing the real problem which is, correct, 100 , maria, it is spending. Unless the Market Forces the hand, too, because one thing our leaders do respond to is the stock market, whereas in the early 80s it was the bond vigilantes that ruled the root i think these guys get terrified when the stock market starts going down because they you know, from the way they calibrate things, you dont have bonds to do it so now you have the stock market. If you get money supply growing at 12 and bonds are in the biggest bubble in the history of mankind, the money is going to go into stocks. Thats the path of least resistance. Maria, what you have to watch very carefully, you have a dance going on and you brought this up thats a very good point. The fundamentals in a lot of ways dont support the equity market moving forward as strongly as it is right now. Right. But in a way it doesnt really matter because if you have all of these artificial mechanisms moving you forward, the market is going to go higher. Right. So what you have to be very, very careful about is getting too far out on the risk curve. Maybe you have equities but you have more conservative equities because there is going to be a point, just like someone who invested in cisco in 1997, 1998 and 1999 and it blew up in 2000, theres going to be a point where the fundamentals are just going to be what really matters. You just have to figure out when that is. Thats exactly it. All right, guys. Got the final word. Were still in a slow growth economy, sub 3. 5 gdp growth. That bodes really well for Larger Companies buying smaller companies. We think the m a story is a story thats really going to go into hyper drive this year and beyond. That should be exciting. M a action. Thanks so much, gentlemen. See you soon. The major averages scoring their second winning week in a row. The s p 500 finishing a smudidg off last weeks highs. Close to the multiyear highs and pretty far from the alltime highs. Take a look at this. Ill do quit math. The Dow Jones Industrial average about 676 points away from the alltime high. The s p 500 93 points and the nasdaq 1,923 points from the alltime high so ground to make up. Sector breakdown, six positive and four negative. The positives led by health cares and materials, and the anythingtives, utilities down 1 . Telecom down 2 for the week. When it comes to the individual movers, apollo group, the forprofit education, one of the biggest losers of the week, shares down nearly 13 . Similarly j. C. Penney getting another downgrade today, this time from ubs. Polling shares down and also one of the biggest losers for the week, but it wasnt all negative, and it certainly wasnt all predictable. Take a look at the best buy chart for the week, particularly today. The Consumer Electronics retailer announcing holiday sales not great but not as feared. Some thinking that some of that turnaround might be starting to take shape. I dont know. Weve got a ways to go on this one, too, i think, and then celgene, one of the weeks biggest winners. Positive news out of that company garnering some upgrades as well. Maria, back to you. Security, thanks so much. Well take a short break and then the first full trading week of the year is in the books. Much more ahead on this busy edition of the closing bell. Our market pros will help us prepare for the wave of market earnings next week and the flu is sweeping the country. One of the top vaccinemakers is running out of medicine. Find out how sanofi is trying to combat the problem. Wealthy looking for alternative income, right . Alternative. They are actually turning to pawn shops. Jane wells has that story from Beverly Hills of all places. Back in a moment. Welcome back. Earnings season picks up big time next week. Mary thompson joins us now to highlight what could move your money. Mary, what should we watch for. Reporter maria, its going to be a big week. 40 members of the s p 500 will be reporting. Specialty coatings firm ppg kicks things off on monday. Well see if strength in the Auto Industry translates into profits for this firm and lennar reports and wednesday its all about the benjamins and banks that handle them, goldman and jpmorgan among the bakes reporting. Net interest margins for the commercials, ebay and schwab also on the docket. Focus on financial continues on thursday with bank of america, citi and black rock reporting. Citis ceo first call. Well be listening. Dow components and intel report, too, along with the freeport damage mcmoran and schlumberger and we expect the Hedge Fund Manager recently with the position on morgan stanley, and he could be looking to shank things up. Well be watching that story, maria. Back to you. Thanks very much. A lot of action next week breaking down their expectations for the big names reporting next week and how the results may impact the market. Good to have you on the program, gentlemen. Thanks very much for joining us. Good to be here, thanks, maria. Doug, help us navigate the next several weeks. Were just getting out of the gate with earnings. Whats your expectations for the Fourth Quarter . Well, expectations are i think were setting up for a great earnings season, so to borrow a metaphor from school, earnings season is a lot like report card season which is coming you, too, and let me tell you about the blessing of the d student. When youre a d student, you dont have to come home with as to make your parents happy. A cplus is good enough, and i think thats what weve set up here for the first quarter. I think on average analysts are expecting 3 Revenue Growth and 3 Earnings Growth for the first quarter. Thats barely the rate of inflation, so you essentially get the grade that you get from signing your name on the s. A. T. Thats all people expect. I think companies will do better than that, and i dont think they have to knock the cover off the ball to get people excited. Cplus, but this market is up big. You think this market is expecting a cplus . You look at estimates. I mean, you look at what analysts are expecting. Is it going to be a disappointment which is really what im getting at. You think i think it will be really tough. I think its going to be tough for these things to disappoint. When youre expecting only 3 growth, a Company Barely has to show up to do better than that and i also think companies will get a pass on the Fourth Quarter because the Fourth Quarter, we had an election, the fiscal cliff and i think dont forget hurricane sandy. Yeah, so you can say, hey, orders were a little bit slow but were starting to see them pick up and every investor will go, yeah, that sounds about right and i think they will give them a pass. Low expectations and the pass for the quarter. I think it will be a good quarter. Rob, lets talk technical. I love technical strategy. How do you charts look to you based on the commentary you just heard on the fundamental side of it . Maria, it lines up fairly well. If you look at where the weekly indicators are, they tend to track the one to twoquarter shifts and they are still building positively. Our view is as you get into the latter part of the first quarter, the market is probably setting up for a more serious correction as you get into q2. One of the things that were looking at is this rotation thats going on in the market. I think thats really the critical point to be focused on for investors and for viewers out there, and that is this rotation of the Global Growth themes and Global Growth cyclicals, all of which or many of which have been in 18 to 24month bear markets and reversing to the upside and the point earlier where stocks have had a pretty good run, put it in the context of some of the longer term data the Global Growth cyclicals still look like they have more room. Schlumberger is reporting at the end of next week, a perfect example of a stock in a twoyear bear market roughly and expectations are really low and intel is another example and i think those types of names still have the potential to move higher almost regardless of what the earnings are, thats almost a flippant statement. The other side is all of the bond proxies and consumer names with huge runs over the last three years, look like theres a lot more risk so theres really a call of where investors are focussed in terms of the themes in the market. Yeah, thats a really good analysis. Ge, you think the expectations are low. Intel. What about the banks . Thats kind of a mixed picture. If you look at the s p financial index, its really up into a lot of resistance so im more neutral on many of the banks at these levels. Doug . I was going to say this is exactly where i think Investment Decisions are made which is when you get the momentum showing you that, you know, the fundamentals look decent and the momentum is confirming youre on the right track, i mean what, john said is exactly kind of what were seeing, too, which is global stuff looks great. The cyclicals look great and the safe plays where people have hidden for the last couple of years and the utilities, consumer staples, they look tired and i think we know they are expensive from the fundamental perspective, so its a great blend and i think, you know, hearing the two of us, you know, should convince some folks that the market isnt going to go down. Not going to go down because of all the money sloshing away, and you think things are getting better. What about the whole fiscal debate, the debt ceiling debate that were no doubt going to see back and forth over spending cuts . Well, i think the i keep telling investors, you know, when the clouds clear off the horizon, and we have no more clouds, youre not going to have the s p at 1450, right, so the reason the s p is at 1450, and by our measure is roughly 15 to 20 below where it should be, thats because there are clouds on the horizon. So you cant wait for all the clouds to clear. I think, you know, in the end the debt ceiling is resolved like the fiscal cliff is resolved. Its messy. Its late, but in the end we get through it. Robert, real quick here. Final question. One chart that sticks out in your mind that looks particularly compelling from a technical standpoint thats going higher. What would it be . Stick your neck out for us . You know what . I think its a contrarian call. Weve been talking about the energy space and gotten tremendous pubback from many clients on the interest there, but its generally one of the last cyclical areas investors rotate into. Theres opportunity here between now and going into the middle of q2. Well watch energy. Thank you for that. Make us some money. Guys, thank you very much. See you soon. Have a good weekend. Appreciate that. Notable ipos on next weeks agenda as well and bob pisani has the lowdown on that angle. Hey, bob. Quiet recently, but next week well get a brand name. Take a look at this, norwegian cruise lines, believe it or not, third biggest cruise operator in neckor america, going to be a 400 million deal. This will be a nice one to watch. It will be in the middle of next week. A lot of interest in Master Limited partnerships. Three of them coming next week. They are back by physical assets that generate revenue. In fact, very nice dividend yields. Take a look. Sun coke energy, 8. 25 yield here. Next one here, take a look at cvr refining, P