15,549 even. For the s p 500, alltime high, write it down, 1689. 40 is the new high for the s p 500. Up 8 1 2 points today. Nasdaq sitting around a 1year high al 3611 with gain in the session of 1. 25 points. We have action for you coming up. We will be talking about the record highs with ben and Deutsche Bank and our own mandy drurry joining us. We will talk with gene munster from piper tehrikejafria from. Expect microsoft earnings, 75 cents, expected. Lets kick off the discussion with todays record highs. Thank you everybody for joining us. So ben, let me kick this off with you. Market at alltime highs. Would you buy or sell here . Well you may not want to add, but definitely dont sell off. These markets tend to overshoot. We are not adding here, but definitely maintaining in balance portfolios. Okay. So you dont want to sell it but certainly you certainly would not be adding here. Paul, would you agree with that . I completely agree. I believe in looking at the longterm trends. And if youre looking at longterm endcators, seeing what is happening with manufacturing, what is happening with agriculture, what is happening with energy and housing, all indicators point up. Paul, let me just interrupt you for a moment. My apologies. Google are out. We want it get right to Julia Boorstin. What can you tell us. Thats right, maria. Googles numbers are out. It is lighter than wall street expected. Googles eps at 956. It was expected to be at 1078. Now looking at the revenue, googles revenue came in at 14. 11 billion. It was expected to be 14. 42 billion. Now maria, two other key numbers to look at here are the cost per click and pay click. Cost per click declined 6 over the Second Quarter and 2 over the First Quarter of 2013. Cost per click was expected to decline. Instead declining 6 . Paid clicks increase more than expected. Were expected to increase 20. 2 . Instead increase 23 . But maria, i want to point out here that revenue and earnings numbers did come in light and that is why the stock is down nearly 5 . Down to you. And stocks traded lower in extended hours. Thank you. We want more reaction from the numbers. Ge gene, what is your take on the numbers . Was it below your expectations . It was. We were looking for the paid click number down 4 and it was down 6 . That is the one everyone is hyper focused on. You need to take the click growth and click growth is better. Bottom line is this. Google is rolling out new platform for advertisers called enhanced campaigns that is probably impacting that paid click number. Ill bet they talk about this transition is impacting that paid click number. And i bet they give some sort of insight that ultimately this will move, click cpcs higher over time. So the bottom loin, those numbers looking rough. But my guess is their commentary on the call will be optimistic. You know, gene, im just getting an email from rich peterson. He tells me one month from today, marks the nineyear anniversary of google ipo. Remember they priced it at 85 a share. So when you look at a compounded annualized rate, we are talking about growth in the stock of 30 a year, compounded. Did we miss it . I mean, should we be selling this stock at the level that it is . Do you think you put money to work here . It depends on what your time w horizon is. I think the enhanced campaigns will have a rise. And not only with the mobile size but youtube, internet of things. Glass and driverless cars. A lot of things that google can get to. It is the best Position Company in tech over the next decade. I think it add massive run. But there are huge markets they can get into. We are looking a the a chart of microsoft while youre talking, gene, because microsoft numbers are out as well. It looks like these are also below expectations. Microsoft trading down. Whats going on with technology here . Markets at alltime highs and tech is underperforming. Well, i dont follow microsoft but i can tell you, in terms of google, ebay, yahoo they have been a slight disappointment. Kind of across the board. I think what is going on is it is it teething process we are having as we come out of the recession and get our arms around what these numbers should be. I dont think there is anything functionally wrong with the tech companies. I think there is natural progressions and people had too high of expectations. All right, gene, state right there. We will continue talking about tech earnings but we will get to ju Julia Boorstin for break downs. What can you tell us . Revenue in at 19. 9 billion. Wall street analyst were looking for 20. 73 billion. Earnings per share coming in at 66 cents. Thats less than 75 cents expected. Also a penny less than earnings per share we got a year ago. Both revenue and earnings less than expected. I will continue to dig through the report and get more on the segment by segment results. Maria . Thank you, julia. Straight to our analogies or microsoft. Jake, what is your take on microsoft quarter . Low expectations for average estimate and stock is trading down right now. Right. We were looking for over 21 billion in revenues. We still have to go through the segments. But i think the most likely suspects were shortfall. Would have been Windows Division where results were probably down sequentially. Thats an estimate. Entirely possible they were down worse sequentially than we assumed. There is very like softness as well in light of the xbox transition thats about to come up. Does microsoft need to change its strategy even further . No. We are satisfied with the strategy as is. Which is to say, we understand the logic of the reorg they announced last week. That makes sense. It will take time to play out. There will be multiple trains, so to say, that will leave the station. That will drive the business. I dont think they need to grow further inor beganganically. They have done that. We have ascertained, for example, that they will not in all likelihood work on house brand windows phone. Relying on partners like nokia and others. All right. We will get back to julia. She has more information on microsoft. Just looking at different divisions here, the Windows Division, which is crucial for microsoft, we saw a decline significantly from a year ago. Ier ago 2. 4 billion. This quarter 1. 1 billion. Operating in Windows Division did go down. Looking at other divisions, servers and tools slightly different in revenue. Microsoft Business Division instead of coming in at 7. 4 billion came in at 7. 2 billion in revenue. Short disappointments in terms of revenue and in terms of operating income there is some segments that did see improvement such as server and tool business. We saw operating income in Windows Division and also a greater loss in terms of corporate level activity and a slightly smaller loss in terms of entertainment and devices. Struggling especially in terms of revenue. Back over to you. Thank you, julia. Interesting to note both microsoft and google are showing declines after earnings of about 4 or so. You see google down better than 5 . Jack with gene munster from piper jaffray, talking about google numberes. What do you want to hear, gene, on the call. You say the paid click numbers are more important and that is what everyone is buzzing about, that they are more expensive, right . It comes down how the progression to enhance campaigns, what that is ehe is not essentially trying to do is they are trying to get raise on what they get paid on the global clicks. So the platform will be fully rolled out july 22nd. So keep in mind these numbers are impacted by the transition quarter around their platform. That can scare advertisers at times. So what i want it hear is just how much is this transaction impacted and specifically of the customers that are using the enhanced campaigns isnt having a positive impact on cpcs. That is a leading indicator the next few quarters and where the cpcs will good. Bottom line, would you put more money to work in google right here . I would. I think it makes sense to own google. All right. Leave it there. Gene, good to have you. Thank you so much. We appreciate it. Back to the markets and record pace we have been seeing. Our own mandy droorry, mandy, you have google down bet are than 5 . Microsoft down better than 4 . Question is, does this set the tone for tomorrow and perhaps this market pulling back from the record highs we saw reach tonight . You can imagine in terms of the tech patchy would imagine that misses like this from microsoft and google, two big heavy hitters in that space, it will probably not bode well. But in terms of tech overall, nasdaq has outperformed dow and s p so it has had a very good run. Maybe expectations have been built in here. I guess when youve got those expectations being built in, if there is any disappointment, it will whack the stock hard. But market has been pretty good overall. So some profit taking is not out of order here. I was speaking to people on street signs, maria, and so far, with the earnings, you have ben throwing fuel on the fire here. Things may get pricey, overbought, so it might be time to take some things off the table. Really the bulk of the gains we see in the Dow Jones Industrial average today, those gains, because if they are better than expected earnings, represent 57 point of the dows gain today and we are up about 78 points. As you know, why do you think technology has been underperforming . We have numbers here for the Second Quarter. Microsoft and google disappointing. Is there anything going on with technology thats different . You have the dow at alltime high. Transports at alltime high. Even russell 2000 high. If you look at Search Engines like yahoo and google, there is a seasonal issue here. People go on vacation. And we know that every this quarter every year, there are just fewer people making fewer searches. That will result in fewer clicks. So it went a surprise to me, if you are looking at kind of, you know, the seasonal adjustments that go with these types of tech companies. Microsoft is something else. You have real disappointments with their windows 8. Itll be interesting to see the office pcs are going down generally as people move to tablets. And i dont see a strategy being a math person, i dont see a strategy for microsoft to really take a lead in any of these areas. Even though theyve got so much cash on the Balance Sheet which is interesting. Sometimes Great Companies are not great stocks, i guess. Exactly. Thank you. Great to see you. We appreciate you on. Thank you. More headed your way on wall street today. Up next, blackrock chairman larry fink will speak with me exclusively. Fink, overseeing the largest pool of money in the world. We are talking 3. 8 trillion. You may want to stick around to get his thoughts on where the money is moving. Ahead, who would have thunk it . Home flipping is back already. Doesnt anybody remember what happened back in 2009 . We will check in on that. If housing is hot again, why is no one snatching up the former versace mansion in miami. The price, more than 100 million. That would be one reason. But what are we resorting to now to find a buyer in robert frank on that story. And one of the greatest quarter backs of all time. Nfl hall of Famer Joe Theismann is here. He will talk about sports business and drug use among athlete. Youre watching cnbc, first in business worldwide. Stay with us. announcer scottrade knows our clients trade and invest their own way. With scottrades smart text, i can quickly understand my charts, and spend more time trading. Their quick trade bar lets my account follow me online so i can react in realtime. Plus, my local scottrade office is there to help. Because they know i dont trade like everybody. I trade like me. Im with scottrade. announcer scottrade. Voted best Investment Services company. Good news on the economy is good news for the markets. Josh, over to you on a recordsetter again. Yeah, maria, another session is history. Lots earnings today. Right now, moving big after hours. Chipotle on the top comps. United health group, leading blue chips and enrolling more people and selling more Health Technology systems. Safeway also bested estimate. We will end on black roth. Largest money manager in the world. Jumping 32 . Ending with assets under management of 3. T9 trillion. Back to you. Thank you. We will stay on blackrock. Joining me now to talk about the markets and envesting today and earnings, blackrock ceo and chairman, larry fink. Good to see you. Hi, maria. Walk us through the quarter, larry. Obviously a great one for blackrock, stock traded well. How is the quarter from your standpoint . The quarter was mixed. We had a great correction in june that went into early july. From may 2nd to excuse me, may 22 to june, a hundred point base increase in Interest Rates which is obviously well known. Ars and and it took a lot of work to help us stay on track. When you have this volatility, people are questioning, are they invested in the right places at the right time . And we have to keep on reminding people that your objectives are a long horizon and you have to stay with it. I think overall blackrock was able to help our clients stay the course and in fact, institutionally clients worldwide stayed the course. They did not deviate. So despite the severe market backdrop, we have seen an incredible correction as you said earlier. We are at record highs today. Those who panicked and ran from the markets during the late may and early june swoon, actually, it was not a good strategy. So our earnings were because of, i think the advice we are giving our client, and we saw our multiclient Platform Work in so many ways. We had growth in our flows in europe. Growth in our flows in asia and growth in latinamerica. We saw a Global Response of an investor putting money to work. And this is a theme youve been talking about for as long as i know you just stay the course and be in this for the longterm. Let me ask you about what is going on on fixed income, larry. We saw, what, 80 billion come out of Bond Mutual Fund and bond atf. What is happening right now in terms of that rotation. So many people are talking about the rotation of bond equities. We havent seen that. But we are seeing a rotation within fixed income. For 30 years we had a bond market rally. We played the bond market quite successfully. It was a great investment place to be the last 30 years. I dont think we will see lower rates. I think we will be at a trend of higher rates. You are tethering your Investment Strategy to an index that will increase its risk. As Interest Rates move higher, the duration or the volatility of the product will increase. And so what we are seeing a rotation and just the beginnings of a rotation of clients moving from what we would call core fix strategies to unconstrained strategies where you are not targeting to a specific index. You are targeting to yield to other items. And we have just begun to see this rotation occur and we think this will be tens of billions, hundreds of billions, of movement into the unconstrained bond funds. So do you think we will see then that money that has come out of bond funds eventually find a home in stocks . That would be obviously incredibly powerful for the equities market, right . Were at record highs today. In our Institution Group we had inflow in the Second Quarter. So we didnt see the longterm institutional money move away from equities. And thats why we are at a higher level today. Obviously, i do think that for those investors who have an overweighted position in bonds, it has been my recommendation as you know for more than two years now, to move some of that position into equities. And i still would say that today people are under invested in equities. People have too short a timeframe in their Investment Strategies and therefore they have been sitting with bonds which have proven to be a good Investment Strategy up until now. And we are looking at moving a closer look at bond equities and moving bond portfolio from core strategy to the unconstrained strategies. It is amazing to see the kind of inflows that you are talking about that you are seeing. Actually etf providers in general seeing incredible inflows. You had, what, overall biggest inflows for year to date and monster etfs. Are you worried about prices . You have vanguard, schwab, coi g coming in, trying to undercut everybody. We have a Core Strategy Fund where we see 3. 6 billion of inflows. We see other investors looking for for etfs to have bid exposure. They are less concerned about fees and much more concerned about liquidity, much more concerned about tracking error. We are not seeing a price war. As more and more money moves into etfs. Course we will continue to lower our fees to make sure we are providing the best product. But there is no price war and no intention of recalibrating etfs at this time. But we saw for the first half, about 30 billion of inflows in our etf shares platform. As of yesterday we saw 6 billion of inflows and etfs lee told us yesterday that he is a worried in terms of where we are. You said a couple interviews ago, im not worried about a 5 sell off. I dont think we ever got to the actual 5 , but you were right on the money. We have about 5 in terms after sell off. Here is what Lee Cooperman said. Listen to this, larry. I wouldnt be surprised personally if the market got no a corrective mode or went side ways for a while. You agree with that larry . The market has come a long ways. We saw disappointment and technology this afternoon. Over all corporate earnings have been very good. From United Healthcare to j. P. Morgan to morgan stanley, we have seen good earnings. Ibm and in tech we see disappointments. Overall i think earnings support the equity markets. As i said to you before, i would never be surprised to see 5 correction. I think i agree with lee. The market should pause now. For the next two months, digest where we are. I do believe markets will be higher by yearend. But 5 correction, i look at it as bu