A little bit earlier in the show, we asked you to weigh in on the debate, the bull or bear. Weve tallied the results and you said steve weiss, natural bear. Make a better argument. So old. Final trades. Joe. Youre up first. Adding to michael kors. Like the setup 11 times earnings. Steve weiss. Spy 147 put. I hope i lose money on them. Its protection under the market. All right, doc. Southwest energy. My favorite take profits and roll up and out. Thats what they did here. Buying. That does it for us. Dont forget to catch fast money at 5 00 p. M. Follow me on twitter at scott wapner cnbc. Historic day. Alltime record high. Power lunch has the story. This is a special edition of power lunch as the dow hits a new alltime high. And breaking news right here on cnbc. If youre just tuning in, the dow has, indeed, hit an alltime high mark. Im sue herera, the nyse, center of the financial universe. You can feel the buzz. Take a look at the screen. The new high watermark for the Dow Jones Industrial was set right after the opening bell. Then we moved steadily to the upside. Right now as you can see, let me just clear this a little bit, right now the Dow Jones Industrial is trading at 14,000268. 75. It crossed that old mark set in the fall, as i mentioned, right after the open. We have full coverage all hour long. Im going to turn it back to ty who is at our global hq. Hi, ty. Sue, thank you very much. Its going to be a busy hour for all of you here and those at home. Well bring in mad moneys jim cramer on this historic day. Im happy the market is at an alltime high but im also scared. My experience tells me every time ive thought, here we go, its safe now, all clear, its turned out not so we will for me over the past decade and a half. Hu not said that, i think you would have heard from me not what you said. I want to celebrate not the average. Thats been exactly what we know has been wrong to do, all 10,000 cap, 11,000. Celebrate people who got this far, stayed with us. I think part of the reason were so strong here, ty, so many pros have been fighting it. So many pros say you cant touch sequestration. You cant touch it, bernanke will take the punch bowl away. The average joe doesnt know what punch bowl is except something on saturday. Every time i hear it. What should i do, im in for the long haul. Is it time to put more money in . How do i play this . Im listening to judge wapner, kors, 66 and much, much lower. I hear other people give me names that make so much sense. Ive got three if you dont mind id like to give you. Lets go. There are three that have done nothing in this chasm. Black rock, probably best equity manager in the world, larry f g fink, this stock is almost unchanged. Great yield, raised the dividend over and over again. Here is another one, nordstroms, we admit the rich are still shopping. Its up three points from the open. From the high. Makes no sense. Wealthy people are buying. We know thats a better run company. They have opened a lot of this nordstroms off the rack. Sure. The last one, i like to come in with a surprise because people want a surprise. Radian. No, sir that didnt know it thought it was road kila deer they spray paint, isnt that a horrible image on the side of the road. This is 10 stock mortgage insurer. Its way back because housing is back. I cant suggest whirlpool, sherman williams, those fit what you say, come in here. Down and could have a big sell with countrywide. Did financing 8 ten days ago. What im hearing you say is look for the stocks that havent moved, find out why, and they are probably still selling at nice prices. Weve got six out of the ten, our great statistician, six out of ten s p sectors are not back. You start with the sector, work backwards. Look at this. Six of the ten. Its not like were sitting here. Youre not highfiving everybody. Not one of those volley balls, spike it, all going to the center. A lot of guys left out of the center. This is down 7 . You telling me thats the same key as when it was about to dive off a cliff. Let me give you one, i shudder the thought is bank of america as bad as bank of america is indicating with the stock . I dont think so. You know what, ty. A lot of countrywide the last radian deal. Youre right. Be joyful, be excited. Skeptical. To get your head chopped off. I dont want a Marie Antoinette moment between you and me. Lets go down to sue who i know wants to jump in here. Listen, nobody wants a Marie Antoinette moment in this market. I totally agree with you. What i find impressive, confirmation from the transportation index this morning, which i think is very important, and the breadth. If you look at the broaderbased market indexes. I take your point completely on the s p. I think its pretty impressive we have not only the s p, russell, 2000, wilshire is participating as well a lot of those bigger indexes are doing quite well today. That is important. Lets compare where we were last time. Sue, when we were last time, it was fertilizer, copper, materials. Materials still not back to where they were. We were so narrow last time it was almost like we were courting disaster. Now its so broad, its almost difficult to find something that isnt. Ive still got some ideas. Sue, i think all of us are seasoned enough to know today is not necessarily the great day to plunge it. Wow, alltime high, let me go put my money to work. Dont do that. I will disavow knowledge of you like mission impossible. This is your kind of day, baby. I have to tell you, i dont want to celebrate but i do want to celebrate the people who made all these money and didnt listen to jeremiah, youve got to get out because bernanke was scaring me. They were all rich people anyway that said that. Jim cramer, well be watching you tonight. Thank you. Good to see you. Well said, jim. Well said. We want to remind you dow at an alltime high. Where do we go from here . A special market edition tonight at 7 00 p. M. Eastern time. A market special on the dow on this red letter day. Sue. Well, ty, on this historic market day, we have a man who has led some of this countrys biggest and most iconic companies. Bob mar deli joins us. His past titles include ceo of home depot, ceo of chrysler. He was a top player at the private equity giant cerberus. He joins us on the set of the nyse. So good of to you join us. Thank you for the invitation. You can feel the excitement on the floor. Its electric. What do you make of the market at this juncture. Jim had a good point of you dont wan to jump in if you havent been in at the highs. But do you feel given your post of the economy a move to all time highs is sustainable in the Dow Jones Industrial . What ive seen out there, sue, certainly from my experience in the auto industry, 17 million to 9, 14, projecting 15. Thats a very good sign. Good for job creation. Second, house, which is the second largest sector that really drives the economy. Were seeing a return in housing. Were seeing housing prices go up. Mortgage issue going down. Were seeing all the commodity suppliers like home depot record leve levels. Those are very encouraging. You mentioned transportation. Starting to see a recovery there. Those are all positive signs. Like jim said, i dont know that i would jump in heavily today because you do have you have the sequester is still an issue. You have the continuing resolution at the end of the month, funding the government, then youve got the debt ceiling. Youve got some real strong gos in and some gos out. One of the things that spooked the market the other day was chinas growth figures and whether or not were really seeing a slowdown in china. You cover the Global Economy with all the companies youre helping out right now. What are you hearing about whats really going on in china and how concerned should u. S. Investors be . Well, i just happen to be with a very influential person in the china market last night over dinner. And he was not as concerned with the announcement as maybe the general public. They announce 7. 5. Obviously they have always beat their number. They have a new congress coming in. So again, for them, even 8 , 8. 5 would not be as robust. But its a heck of a lot stronger than what were seeing. Again, as the president talks about sequester maybe taken. 6 of a point off, my concern is i wonder if were accepting a new phenomenon here about running slower and jumping lower in our gdp growth. I hope we dig deep and really drive innovation and really get this gdp fumble going along with where the market is so its predictable and sustainable, sue. Do you anticipate an enormous amount of volatility with things coming together with sequestration or do you think the market factored some of that in. Look, the market is very smart. The investors are very smart in general. Im hoping, im assuming they have. We have two more big issues to resolve in this country relative to financing the future for our families, for our children and our childrens children. I hope they have factored it in. I hope it doesnt create a blip in the market. Stay right there. Were going to talk more about the art of deals and much more in just a few minutes. Mr. Nardelli will be with us after the break. On the agenda he mentioned housing and the housing market. Well talk about that, the state of private equity. Who is ripe to be bought out. Also ahead, a sector left out in the cold in this historic runup. Kayla tausche on the case for us. The banks rocked the crisis, having a hard time bouncing back. Show you where the sector is going from here regardless of which way the market goes. Sue. The first five top performers the last time the dow was at a record high, which was 2007. Take a look at that. Home depid hepodepot, 108 . Back in a minute. If you think running a restaurant is hard, try running four. Fortunately weve got ink. It gives us 5x the rewards on our internet, phone charges and cable, plus at Office Supply stores. Rewards we put right back into our business. This is the only thing weve ever wanted to do and ink helps us do it. Make your mark with ink from chase. How do traders using Technical Analysis streamline their process . At fidelity, we do it by merging two tools into one. Combining your customized charts with leadingedge analysis tools from recognia so you can quickly spot key trends and possible entry and exit points. We like this idea so much that weve applied for a patent. Im colin beck of fidelity investments. Our integrated Technical Analysis is one more innovative reason serious investors are choosing fidelity. Now get 200 free trades when you open an account. Right before the break we showed you some of the best performers since the record high in 2007. Well, on the flip side some of the dows worst performers since that high watermark include cisco, general electric, hewlettpackard, bank of america and alcoa. Ty. Sue, not a dow component but also on our radar on this record breaking tuesday, Southeastern Asset Management owns 8 of that pc maker turning up the heat demanding the company open the books. A growing number of investors unhappy with michael dells plan to take the Company Private for 24 billion, 13. 65 a share. Meanwhile u. S. Regulators have granted pfizer an extension on its multibillion dollar pain drug celebrex into early december 2015, prevents generic drugmakers from cashing in. Pfizer is there, as you see, at a 52week high. As the dow breaks past its record high back in october 07, one sector is still nowhere it used to be. That would be the banks. With more analysts getting bullish on the sector, could financials lead the next leg of the rally. Should there be a next leg or are the glory days gone . Kayla tausche will explain. Hi, tyler, financials are taking part in todays rally. They are up 1 as the dow surgeons to record highs and takes the s p along wit. Just the latest of the recent rally where banks were some of the best performers. Even given recent gains analysts think theres more room to run this year alone. Consensus price target seesty group rising the most up 14 . All the universal banks as well. Goldman sachs loan ranger analysts forecasting to be in the red as far as where they are trading now. Those percentage games destroyed wallet on set of the crisis. In all s p financials down 50 since the last high. Of course, the crisis in the synthetic instruments created by wall street force add few banks to close up shop. Not to mention take the government as a shareholder. Citigroup and aig lost so much market cap they got bumped out of the dow. Bank of america is in but posting worst performances of 30 stocks. Financials Still Holding roughly the same weight in the index. Before the banks that made it to the other side, tyler, they are down but not out. Balance sheets once near the brink, some are saying they are stronger than ever right now. We were talks as an aside about amex, a financial, but not a bank. Since the market low in march, it is, i believe, the number one performer in the dow but it didnt get bailed out. Didnt get bailed out. Nothing as a subprime amex. Thats exactly right. Youve got a Platinum Card youre doing all right. You are. Down to you, sue. Thanks, guys. Bob nardelli back with us with the dow sitting at an alltime high. What does that tell us about the outlook for housing and private equities . Great to have you back with us, bob. Thank you, sue. You mentioned housing before. You used to run home depot. Yes. What does your gut tell you about this housing recovery right now . Im encouraged when lou at all the builders. Their prospects have been very positive. I think the pent up demand for housing is there. I think valuation has gone up, which is another good sign. Were starting to see occupancy going the right direction. So im really encouraged by whats happening in housing. Its such a strong indicator for the overall economy and job creation. There are some people who are using the word housing bubble again, primarily because weve had that pent up demand. Weve also had a lot of foreclosures out there. What do you make of that argument . I think its way premature to call this modest recovery. If you think about how far we have fallen, and the fact were now increasing is great. Were not back to the record levels we saw in, what, 2006. Right. 2005 and 6. Now looking at over a million starts. Im encouraged at the recovery. Were not near the bubble level yet. The other issue that gets a lot of talk down here is the fact deals are being done again. Mergers and acquisitions. Your new company accelerate advise as lot of companies on doing deals and also restructuring. Yes. Tell us about that. What are you seeing in the corporate landscape right now in terms of deal making and also in terms of the restructurings youve been involved in. Im certainly not doing the deals like ty talked about with michael dell. Im seeing in the mid market, midcap area, im seeing a lot of familyowned businesses, privately held businesses wanting to monetize, wanting to get some money off the table as they see the recovery, maybe reinvest in the market because they dont want to be left out. Im really encouraged with deal flow. Im really encouraged if you look at the big private equity companies, they certainly have done extremely well in this recovery. I think that will continue. Energy is also on your radar screen. Your comments to me kind of echo those of jamie dimon, jpmorgan chase, energy could be the biggest job creator out there. Absolutely. Bar none. When i think about energy, i think about, you know, the lombardi saying, if not now, when . If not us, who . I think the implications for a Strong Energy policy, weve talked about it, we need to do it, sue. Job creation. Nothing more gratifying than being able to have a job and your selfesteem that creates revenue as opposed to taxation, sustainable predictable revenue. If were the low cost energy provider, manufacturing jobs come back to the u. S. , which means you dont have the issue of repatriation of profits, right . Your defense spending should go down because youre not going to have to protect supply chains i think energy, several people have said this, is really the fuel, the oxygen in whats going to really help an economic recovery in this country right now. Well, well see if they execute on that. Thank you, bob nardelli for spending time on power lunch. Great to see you. Come back soon. I will. Ty, up to you. Sue, thank you. The dow hitting at record high. 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This is coming as citigroups ceo is wrapping up presentation at citis Financial Services conference giving clear outlines of targets for financial metrics the city will follow, also saying, quote, not afraid to restructure businesses if they fall short of targets. He said targets are necessary for the company to be held accountable for how its doing and said you are what you measure. As far as those businesses that could be restructured, he identified 21 markets where the company, if they cant optimize those businesses, he said they are not afraid to scale back or exit entirely. That is exactly what investors want to hear. They wa