Buy. Very good. Thank you both. Have a lovely long weekend. Yes, the markets are closed on monday. Well see you again on tuesday. Stay tuned now for the second hour of the closing bell with maria bartiromo. Have a good weekend. And it is 4 00 p. M. On wall street. Do you know where your money is . Hi, everybody, welcome back to the closing bell. Im maria bartiromo. The dow and s p 500 closing at yet another fiveyear high today. Take a look at how were settling on the street. Money coming into this market pushing the industrial average up about 48 points, onethird of 1 at 13,645. Blue chip average, volume picked up as well as you can see there. Nasdaq, close but no cigar. In the red, down a point and a third and the s p 500 picking up about five points. The dow, the best performer of the week, no doubt about it. Blue chips up better than 1 and the s p 500 up 1 on the big. Nasdaq the big laggard mostly due to apple. The stock had a bad week, barely positive since monday on the nasdaq. What a week it was . Can the rally continue with a whole host of earnings coming out . Stephanie link is with me as well as samir samana and dean kernik and also with us is gordon charlot. Good to see everybody. Stephanie, got such a great finger on this market. What do you think . Do you think this market goes higher this next week . Next week will be interesting. A lot of people are focused on apple and google, and if you look at other companies that are reporting, dupont, freeport mcmoran, Union Pacific and dover international. These are real Industrial Companies that are going to give us a good read on the global picture which i think is going to be a little bit better than what people are thinking, and it really supports what weve been saying for a while now that the global economies are recovering. If you heard schlumberger and ge today, both companies on their conference calls, talked about china being probably the best area for activity 2013. And i think thats very exciting, and thats the reason one of the main reasons why you want to be buying this market if you do get a little bit more volatility over the next week. In addition, i think the u. S. Continues to do pretty well, too. So i like the market, and on volatility were buying it. So, weve got an economic story that seems to be better from the macro point of view, dean. And by the way, i should point out this market rocketed at the end of the day, settled up 53 points on the Dow Jones Industrial average. What does the macro story look like you to right now . The macro story is considerably better than its been over the past couple of years, pes legs with the european contagion story. Not done but off the table for now. Obviously things like the debt ceiling and the dysfunction in washington are reasons for concern, but i think one of the factors thats underpinning the equity market is the fact that bonds rates, u. S. Interest rates, its a tired story and folks are getting very frustrated fighting bernanke. Gordon, let me ask you what youre seeing in terms of flow. First of all, what happened at the end of the day here . I turn my eyes away from the ticker for a moment, and the market is up 53 points. What was the flow at the end of the day, and would you go into next week holding technology . Is that another weak spot, do you think, next week as stephanie just pointed out that a lot of industrial names, the real economy stories, are going to start driving things . Well, maybe. They were buying beamary little bit and beamer reports next week, too. You cant turn your head for a minute in this market. Washington puts out a little blush they will start cooperating with each other, that seems to be a little bit of a catalyst. Kind of gave us anni impetus foa bust. If you go back two years, 2011, bump early in the year and the markets sold of held and then sold off. Last year it looked like it might follow that same pattern, and then it didnt. It continued to rally into the close. So you almost have a january effect, a bit of a performance. Starting early and people getting involved right away. Involve picked up today. An expiration that accounted for some of it. Money flow looks like its coming in. Seeing on the institutional side and no reason why you wouldnt be involved. If you try to buy the dips, you may miss them. Samir, from your standpoint, want to buy tech or avoid tech going into next week knowing that weve already had some disappointment with apple, apple reporting on wednesday. What do you want to do . Seen a nice pullback, could it be a further disappointment . Its possible but at this point you have to Start Building exposure back up. Also in industrials, stephanie mentioned the earnings there, also like materials and then telecom has had a nice little pullback and got some pretty nice dividends there and a couple other areas that would catch up which would be commodities and starting to look at emerging market debt as an area that can be interesting and a little bit of a yield play. Certainly has been a hot performer actually. In 2012 we saw money moving in. Everybody was looking for yield. Everybody looking for yield. Absolutely. Thats the bottom line. Exactly. Ultimately bernanke is forcing folks out into the risk spectrum. Thats been the strategy and absolutely the case that money is flowing into stocks coming out of the bond market, for sure. Do you think that continues, stephanie . What about you on apple going into the earnings wednesday after what weve seen on the stocks . Its hard because i dont think anyone really has an edge. Everyone is talking about the demand being worse than expected. Numbers coming down and target prices coming down and we have to hear what the company says, particularly about gross margins, and i think the quarter might be better thanexpected, but the guidance is going to be soft but we have to see how soft. You want to get through that, but in terms of technology thats the sleeper sector. I dont think a lot of people are talking about it. Fourth quarter will be crummy and the fourthquarter guidance will be lower, but people might start to look through that as i. T. Spending improves in the back half of the year. As businesses get more confident because we get through the fiscal cliff and the debt ceiling issue. Well see how we get through it and where the cuts come from. Go ahead, samir. I was going to say its been really interesting how much of a rotation youve seen in tech especially on the sentiment side. All about the death of the pc and the likes of intel and dell and hp selling off and now its completely the opposite where a lot of the stocks have had pretty nice runs, whether its because, you know, they have announced restructurings or buybacks, and now its kind of the maybe not the death of it or whatever, but youve had a very nice pullback. Very interesting how quickly youve seen that rotation in technology, and i kind of point people back to the fall as to how quickly things change in a hurry. Thanks very much. Have a great weekend, and we will talk soon. Thanks. Appreciate your time tonight. Major averages hitting threeweek winning streaks with the dow and the s p 500 touching fiveyear highs. Bob pisani has all the action today. The important thing is lets take a look back and see where were at. Put up the screen. Dow industrials joining the s p 500 at a fiveyear high, historic highs on the transports. On the russell 2000, the smallcap index. In the heart of earnings season, and i see signs that stockpicking is mattering again. Look at multiindustry companies that report. Love that were in the industrials right now, part of the earnings season. Ge, great numbers. Parker hannaford, good numbers. Thats a new high. Johnson controls and guidance for the Current Quarter is down 3 , but can you see the other Technology Stocks really didnt lose that much. The industrials didnt lose that much. In other words, very specific movements on the companys own reports or guidance. How about rotating . Lots of talk about rotating into industrials and out of banks. Its true the banks are looking a little tired. A lot of disappointed on capital ones earnings today, but you can see most of the banks didnt do much on either side, a positive or negative, but they have been looking signs of topping recently. How about semiconductors . If intel issued disappointing guidance a while ago, a couple quarters back, a lot of other big names would have been down today but it didnt happen. Taiwan semi, texas instruments, micron didnt do well. Talking about raising the debt ceiling. Look what it did to the vix, to the downside and for the week, maria, the important things is all the moves into cyclical names. Energy and industrial stocks all moving. Back to you. Thanks, bob. A lot more coming up on this jampacked edition of the closing bell. 80 companies will post earnings next week. Despite the shorter week, a lot of them bigname technology companies. A panel of market pros will tell us how they expect this to drive the market and later, asleep at the wheel. The fed releasing transcripts from emergency meetings in 2007 as the crisis was just beginning, and, boy, did they miss the big picture. The story coming up. Also ahead. Holy car auction the batmobile from the popular 1960s tv series hits the black this weekend. Our robert frank on the lowdown with how high the bidding could go. Which batmobile would you buy right now . Well reveal the most popular coming up. Id say youve got to go with adam west or michael keaton, my two favorites. What is your favorite . Back in a moment. E welcome back. Another blockbuster week of earnings ahead. Kayla tausche running through the roster to determine if the rally could continue. Over to you, kayla. Reporter 62 of the companies have beat profit estimates, though blended Earnings Growth just 2. 5 per thompson reuters. More data points next week, even though its a short one. Got a busy calendar. Tuesday, kicking off with five dow components. Chemical giant dupont, Johnson Johnson representing big pharma, verizon, ibm and travelers, googles first earnings since last quarters press release misfire showed falling ad revenues there. On wednesday, mcdonalds expected to post flat profit from a year ago during a quarter where samestore sales hit a roque patch. After the market closed, netflix reports. A key number there is subscriber growth. Investors watching nothing more closely than apple. Hit with a spate of recent downgrades and potential profit warnings. Moving on a thursday, maria, starbucks, xerzier objection an three dow components and microsoft and how its surface tablet fared during the holidays and honeywell and procter gamble. Wall street is expecting 111 per share from pmds bob mcdonald in the face of activist pressure on him and the companys board, maria. Thats whats on tap for next week. Great week, big week. Kayla, thanks so much. Financials were certainly stars this week when it comes to earnings, but technology will take center stage next week. Where will the drivers be of this market, and will they hurt or help stock . We have david perl and rob lutz of capital money management. Good to see you, gentlemen. Thanks so much for joining us. Great to be with you. David, you say apple and google will be the key ones next week. Break it down for us. Why those two and what are you expecting . Well, the markets discounted apple over the last three months as if their Revenue Growth is going to the single digits. Its not. Clearly the rate of growth is slowed but they are going to sell a Record Number of iphones, and their growth rate, while seasonably will be low in the first quarter, will start picking up with new products in midyear. The new iphone traditionally comes in around summer. Probably a new ipad and maybe that apple tv. So at a 20 discount to the market, it is extremely cheap. Everyone who loved it seemed to sell it last week, and now were waiting for perhaps value buyers to perhaps pick it up. Rob, do you agree with that . Do you see sizable growth activities in technology . I certainly do, and although the company is reporting next week. Many of them are very large, and would i suggest that you might want to look to Smaller Companies to gain, because a lot of disruption in technology today, but we think on apple we have a big position in that. I think it has 5 , 10 upside in the stock when they report the earnings. I think the street has been all over this and everyone is way too worried. I think apple will be a big catalyst for the whole market next week. So even though its been declining and people are worried about apple . Right. Now, everyone but apple has spoken. Right. Next week well be able to hear from apple. You know, apple will tell us whats going on. Thats more important. This company is a phenomenal company, and i dont think its over yet. One key concern is profitability, and i think one thing about steve jobs, we always saw him put out products and he had a minimum 10 margin on it. Well see if this new apple without steve jobs has that same discipline. I hope it does, and if it does it will be a great stock for a long time. So, in other words, i think i hear you both saying put money to work in tech next week. Tech has been one of the worst performing groups over the last year actually because of multiple compression. Not so much that the earnings were bad. In fact, you know the s p earnings were only up 2. 6 for the year, and yet the market was up 16. Its really due to valuations increasing. Technology had the opposite happen, so the Bigger Companies are extremely cheap. Actually historically cheap, and as long as they have growth, and they do, greater than the average growth of the s p, they are all buys. Yeah. But, dave robert . Yeah. I would say theres some Tech Companies that are really destroying value. Hewlettpackard, dell, microsoft, not creating value anymore. In fact, its a utility company. The last 10 or 12 years microsoft produced its dividend, and thats it. Nothing over that. Thats a great point to make actually. Do you want to sell those stocks . Would you sell those stocks here, or do you think because huelet was the worst performer in 2012 in the dow . The expectations may be so low today that they will rally, but they are not longterm companies you dont want to own in your portfolio for a long time, so im not interested in those companies. Im interested in companies that are innovating and have great growth, a company like tesla motors which is using great technology, or a company like splunk, splk, 300 bimillion market cap companies. Thats where i would put my money. I disagree on apple youre getting a 3. 5 dividend. Exwindows, the company is doing incredibly well and for windows, frankly, just got out the right products which are these convertible ultra books, so youre going to have a best of a tablet and notebook in one, running all the programs you would in business, so a tablet is great for watching things or reading, but if youve got to do work, you really need something with an integrated keyboard and microsoft office. But they are just getting that out. David, youve got the youve got the major problem with microsoft. They are under the desk. They are in the computer that is dying, and and this is a major problem for them. Theres not a lot of growth in microsofts products. It will probably be a moderate performer after these earnings come out. I think youll get a good boost short term. Longer term microsoft has serious growth issues, so i think its a company to be avoided. All right. Well leave it there. Gentlemen, thanks very much for joining us. So appreciate it. Well watch all of those names next week in a busy earnings week. Over to Bertha Coombs with a quick market flash. Over to you, bertha. Reporter the s p and dow both up 1 this year ending at fiveyear highs, and when you take a look at the Dow Jones Industrial average, five stocks are closing at new highs for travelers, j j and also 3m, they closed at historic highs. 3m, the best performers, up 2. 5 this week. Thanks so much. The fed knows everything. Transcripts from our 2007, pour cold water on that. Shocking details of what was said and what wasnt said as the financial crisis was unfolding, and later, which batmobile would you buy in the one from the 1960s tv series. Goes up for auction this weekend. Tweet us cnbcclosingbell. Well air your favorites in the back half of the program. Back in a moment. In a first of its Kind Partnership with walmart, humana medicare plans now include 5 savings on great for you healthier foods at walmart its part of the vitality healthyfood program. And one more way humana medicare can help you choose whats good for your health and your wallet. So you can spend a little less money. And spend a little more time sharing what you know with the people who matter most. Humana. What are you doing . Nothing. Are you stealing our Daughters School supplies and taking them to work . No, i was just looking for my stapler and my. This thing. I save money by using fedex ground and buy my own supplies. Thats a great idea. Im going to go. We got clients in today. [ male announcer ] save on ground shipping at fedex office. With multiple lacerations to the wing and a fractured beak. Surgery was successful, but he will be in a cast until it is fully healed, possibly several months. So, if the duck isnt able to work, how will he pay for his Living Expenses . Aflac. Like his rent and car payments . Aflac. What about gas and groceries . Aflac. Cell phone . Aflac, but i doubt hell be using his phone for quite a while cause like i said, he has a fractured beak. [ male announcer ] send the aflac duck a getwell card at getwellduck. Com. Lets say you pay your guy around 2 to manage your money. Thats not much you think. Except its 2 every year. Does that make a difference . Search cost of Financial Advisors ouch. Over time it really adds up. Then go to etrade and find out how much our advice costs. Spoiler alert its low. Really . Yes, really. Etrade offers Investment Advice and guidance from dedicated, professional financial consultants. Its guidance on your terms, not ours. Thats how our system works. Etrade. Less for us. More for you. Welcome back. Shocking revelations from fed policy meeting transcripts dating back to 2007 when the financial crisis was just taking shape. Our Steve Liesman with the story. Steve, this took you by surprise, huh . Reporter there were some really interesting comments on there, the release of the fed transcript five years afterwards, and whats clear from the monumental meetings of the fed in 2007 is we know now if we didnt already that jim cramer was right. The fed really did