was 14,164, but we have come a long way, baby. a long way from the bottom, like we have doubled. that is pretty incredible. and also incredible, the surge since president obama took office. the dow is up 63% since inauguration day. that ranks him fifth. after 1,153 days in office, fdr, calvin coolidge, dwiez eisenhower, and bill clinton had b better records. and this is important, because a lot of the americans are invested in the stock market. according to gallop, 54% of americans own stock through the pensions and the 401(k)s, and the market is not for the very few. the question is will the largess will last. i went to the stock market exchange today, and traders clapped half heartedly, and i have spent a lot of time down there, but i had to confirm that the clapping was really for the milestone. i was told it lacked enthusiasm and drifting upward without conviction and in a word one trader used, lame. well, lame it may but be it is not taking away the point that it has risen so much since the financial crisis. but a rally needs enthusiasm. peter, good to so you. i was down there today, which was pretty neat. i'm going to talk about it later in the show, my first down there in a long time. and yeah, there was not a lot of enthusiasm. what is your view on if we can find a reason for this market rally? >> well, i think that, you know, if you stop to consider that we are up 23% in roughly a quarter and a half, the market has moved with great sponsorship, and great leadership and large cap, tech, financials and the underpinning has been strong and the gdp numbers and the employment improvement, and a lot to support the market in terms of the macrostory and earnings. they have been quite strong over the last two quarters and has been so far in this quarter, largely beating expectations for guidance fairly positive, so with that as a backdrop and considering that though many people are invested in the market, 54%, the number you mentioned previously, there is still quite a bit of cash on the sidelines. if you can see a pullback in the cost of energy, and a pullback in the cost of what the geopolitical represents, you could see the surge of capital into the market. >> and let me ask you that question, because some of the numbers that we will share in a moment are stunning. people making $75,000 or more in the country, 87% of you who are watching in that category likely own stocks in some form or another. half of democrats own stocks, and 64% of republicans own stocks, and would you tell them though right now, peter, to put more money in the market, because the problem is that it always feels like the regular people get excited when it moves up and we buy and then the lame rally drops off. >> that is an old adage, because the retail investor is the counter interdicator and a lot of times they're motivated by the numbers, the enthusiasm of a 13,000, for example. i would say this, getting into the market is a process. you never throw all of the eggs into the basket one time, ever. never exit the same way. scale into positions, and you lighten up on positions, and in a methodical manner, and that way, you manage the risks and you can manage the overall portfolio, so it is a question of scaling in and scaling out. 13,000 substractive, if you see energy drops, geopolitical turns, and see greece continue to menld, that story continue to mend, you could see money come to the market, but it's never a good idea to put all of your eggs in a basket at the same time. >> thank you, peter kenny. some of the geopolitical issues concern iran, and there is a lot of news out of iran today. we will get to that. heerbz here's how the logic goes, people feel they're going in the right direction whether they're going in the right direction or not. but some who do invest will hire, and then drive the economy in the right direction which could deliver the election back to barack obama. but the president did not overreact. his reaction was cautious. >> our economy is getting stronger, and so we are headed in the right direction and the last thing that we should do is to turn around and go back to the policies that weren't working in the first place, and that is why it's so important for isto stay focused and congress to continue to do the things the american people want to see done in order to improve the economy. >> and joining us are two of the three musketeers, and jamal, let me start with you. politically, should the president be embracing this more, i'm the fifth-best president, and that's pretty good. >> i'm number five. >> mombo number five. 63% since he took office. or is he hesitant because he doesn't waunt to be linked to te markets which somehow make him wall street? >> well, it is a tricky place, and there are so many pitfalls and the dow number can go up, it can go down, and he doesn't want to be held captive to it. he has to stay focused on what people are focused on, jobs, economic growth, the numbers that move people's real lives, and getting caught in the dow jones number every day is a tough spot to be in. >> one interesting thing though, because you have talked about how independents are 40% of the electorate, and with the candidates go to the right right now, it is a sweet time for obama to come in to try to grab them. 50% of the independents own stock, and that is a stock-heavy group, should he be using this to try to get them? >> well, you is the core effect which is the wealth effect. when people see that their 401(k)s are growing, they will spend more. that's the scary thing about the state of the economy, because basically people's savings are going down. right after the crash, they went up and now down. we have a consumption-fueled mini boom happening right now, but the problem is that the stock market is really decoupled from the state of the real economy and corporate profits higher than 60 years, and not salaries. >> hiring is not. that's a big problem. maybe that was the point he was trying to make, jamal. let me ask you, the wealthy have been frustrated with the president, and maybe he doesn't worry about their vote, but does that make some sof their frustration with him go away. delivering him some of the wealthy democrats who weren't going to vote for him, and now maybe they will? >> absolutely. you were talking about the 75k voters plus, and those were very key to the republicans in 2010, because a lot of them who voted for obama in 20008, thinking he won't raise our taxes, this is a good, solid, moderate guy, and then they said, i don't think so. now, when they see the 401(k)s getting bigger and bigger, and that is going to defang the opposition, and the sense that obama is a radical or whatever else. >> jamal, should he adjust the tax rhetoric at all or not? >> no, i think he's in the right place. today was the old home day for you and you were down in the old haunts, so you were probably around some folks who are maybe a little bit more conservative in general and may not be the obama voters, but when you look at the broader measure, people who make over $2,0 thou$200,000 are maybe more democrats than republicans, and when you get higher than that, you may see the people coming back to the president, and they don't mind the taxes. rhetoric, because they feel like they are not paying as much as they could be. >> you think that people at $200 don't mind the tax rhetoric? >> well, if you look at the latest poll, and the poll out the other day, talking about people who make over $200,000 said they don't mind the president talking about it, and something like 60% of it, so the president is not as trepidation a state as one might think by making the arguments. >> well, it is the $250s, because that is when it will go up, but it is a interesting point. and what does this mean for the people running against him? because it seems that the jobs are coming back and the market is going up and the president, as jamal says fairly, is in a sweet spot right now. >> well, it is very, very awkward, because you have a compelling message to say that there is something wrong with the economy in which the stock market is decoupled from the fate of a lot of working and lower class middle class americans and that is not the way that the republicans have been connecting. mitt romney is not good at speaking to the turmoil facing lower and middle class americans. and he doesn't have a lot of policy solutions to speak to that constituency. and those are voters who are either drifting to the republicans or cultural issues or democratic voters solidly. >> and the other danger, and real quickly, the other danger for the republicans is that they can't be in the position of talking down the number. and when the good news numbers happen, they have to walk a fine line and not look like they are rooting for defeat here. >> thank you so much to both of you. well, democrats, are they doing dirty tricks to skew the results of the michigan primary? and are the democrats kneeling at the altar of rush limbaugh? and dominic strauss-kahn and his involvement of a prostitution ring in france. and in new orleans, they're partying. 13 million ways mardi gras could be helping you. the first technology of its kind... mom and dad, i have great news. is now providing answers families need. siemens. answers. spark card from capital one. spark cash gives me the most rewards of any small business credit card. it's hard for my crew to keep up with 2% cash back on every purchase, every day. 2% cash back. that's setting the bar pretty high. thanks to spark, owning my own business has never been more rewarding. [ male announcer ] introducing spark the small business credit cards from capital one. get more by choosing unlimited double miles or 2% cash back on every purchase, every day. what's in your wallet? this guy's amazing. [ technician ] are you busy? management just sent over these new technical manuals. they need you to translate them into portuguese. by tomorrow. [ male announcer ] ducati knows it's better for xerox to manage their global publications. so they can focus on building amazing bikes. with xerox, you're ready for real business. then don't get nickle and dimed by high cost investments and annoying account fees. at e-trade, our free easy-to-use online tools and experienced retirement specialists can help you build a personalized plan. and with our no annual fee iras and a wide range of low cost investments, you can execute the plan you want at a low cost. so meet with us, or go to etrade.com for a great retirement plan with low cost investments. ♪ and turning now to arizona where cnn is hosting what could be the final republican debate tomorrow. a week before the state's primary a brand new cnn/orc poll shows mitt romney and rick santorum tied statistically there. romney at 36% and santorum at 32%. and that is within the poll's margin of error. the liberal blog the daily cose is taking a page out of the playbook of rush limbaugh. >> i want hillary to stay in this, laura. this is too good a soap opera. we need barack obama bloodied up politically, and it's obvious that the republicans are not going to do and don't have the stomach for it. >> that is rush in 2008 calling for the republicans to vote for hillary clinton in texas. the state like michigan who has an open primary. well, some say that operation chaos as rush limbaugh says had a lot to do with it. and now they're urging democrats to vote for rick santorum, saying the longer this gop drags on, the better it will be for team blue. and so is that true? we have joe johns and toure joining us now. funny, what goes around comes around, joe, huh? >> well, it is funny about this thing, because i talked to a number and several michigan democrats who have heard about this thing today, but it is really in the buzz stage, so i can't, if you will sort of gauge just how many people are actually thinking of doing it. when you talk to democrats about an idea that is just in the formation stage, you will get a lot of different opinions. i think that the consensus is that it is both good and bad. we talked to daily coast today, and their opinion is, look, it is a serious idea, and their idea basically is to extend the republican nominating process as long as possible and make mitt romney spend a lot more money than he has already spent. but i have to tell you, erin, the other thing is that we talked to another democratic analyst today who said in his view, this is a cynical idea and he called it unethical, and said that it is an attempt to game, if you will, the presidential nominating process, and even went as far to say that the white house should step in and ask daily kos and others not to do it. so it is generating some controversy, but not sure how far it's going to go, at least just yet. >> and john avalon, i know that the daily kos is making a joke, but in 2008, you saw the conservative turnout up 7%, when rush limbaugh did caught for this and hillary clinton did win. >> and we learned that every vote counts. iowa was 34-vote margin and maine was 194, so look, every vote counts. and in an open primary, there's no barrier to entry, especially in a year where this is the only game in town. it is a cynical idea, and you can argue that it is interesting how the folks to the far left and the right echo each other explicitly right now. >> john, what is your feeling on the ground talking to people, because we're all talking about, wow, if mitt romney has to win or can he really afford not to win. what are you hearing is the momentum? who has the mo right now? >> well, that is anybody's guess, and i'd tell you that i'd like to see a good solid poll on the ground out here. i can tell you that watching mitt romney, he is pushing very hard here. he's making some steps that he hasn't made before specifically talking a lot about the social issues now. he did that today, and it looks like the campaign is taking the threat here very seriously, because you know, if mitt romney can't win in the state he once called home, where can he win? that is what the question is going to be. >> well, it is not just trying real hard to double-down, michigan is must-win, and you have mitt-maggedon. if he doesn't win michigan. >> did you coin that right here? >> there you go, i give it to you as a gift. >> i'm applying for a trademark right here, john avlon. >> well, you are hearing that if mitt does not win michigan, we are starting panic mode and looking for someone else, so this is very, very high stakes and some primaries count more than most, and this is one of them. >> when will we know, john? obviously the daily kos in the buzz stages and say it does happen, and say it moves in a couple of points and a couple of point margin and will we know it right away how many democrats voted or is that something we won't know for sure ever? >> well, we have to look at the exit polls and people will be doing it with a sense of gonzo pride. >> they won't lie about their party affiliation? >> essentially, and there is no barrier to entry, and the primaries are great, because it gives people like me who want to vote for the person and not the party, a chance to vote in the proce process. here are the hard partisans creating what they worry about, intentionally trying to distort the process instead of trying to get a ideological clear candidate for the other guy. >> well, it is must-say, must-do? what do you say? >> well, romney has to make rick santorum look small and not presidential. santorum has to get romney rattled, and make him look brittle and out of touch with the middle-class voters. >> they are all going to be watching there, joe? >> yeah. absolutely. i have to tell you, too, one more thing about the daily kos piece, it is not just michigan. you know it is also north dakota, and it's tennessee. and it is one more, vermont. so there are other states who have open primaries, and daily kos is sort of targeting those as well. it could be very interesting and not just here, too. >> all right. well, it is going to be fascinating to see, and maybe the daily kos will be a guest on the rush limbaugh show. >> kumbaya. >> and history will be made. and join us tomorrow for the arizona republican presidential debate. john king is there and will be moderating. could be the last republican presidential debate you'll see. you know how they have been, fireworks. a year ago, he was the front runner for the french presidency, but today, dominique strauss-kahn appeared in france where a mob of journalists waited. the reason, he was questioned about a suspected prostitution ring that provided women to sex parties his lawyer said his client is innocent and said, quote, i challenge you to distinguish a nakt prostitute from any other naked woman. he wants to clear his name and said he wanted to be questioned. this is the latest in a string of sexual allegations against the former head, the most notable in may, when a hotel maid claimed he raped her. those charges were dropped. i asked how much longer he might be subject to questioning. >> well, he was brought in at 9:00 a.m. this morning and in an unmarked car, and there is not a thing such as pretrial here as in new york. at least, it will be a relief for him. he is being investigated on two counts, first, complicity in the prostitution network, and number two, knowledge of the misappropriation of company phones. so this is what is being investigated at this point. what our sources are telling us is that this police custody might finish up tomorrow afternoon local time here in france, or so at which point he might be brought in front of a judge and the judge of course will decide whether to charge him on either one or both of the counts. >> and obviously, people in the u.s. are easily to be confused, because prostitution is legal in france and we are obviously familiar with the original defense that dsk's lawyer had mounted that it is hard to tell a naked woman from a naked prostitute, and how could dsk have known, but could you explain what they could exactly charge him with if prostitution is legal? >> yes, of course. so what has been happening is that allegedly, of course, there was this prostitution network which is not a large scale operation, but apparently well run and well organized which was based partly in belgium and partly in the northern french city where it was known for providing prostitutes of clients to a luxury hotel, and through this network and through a number of acquaint nlss and friends of dsk, a number of prostitutes were invited to have sex with him while attending so-called parties on about ten akags or so in brussels, in paris, and in washington as well while he was head of the imf. so while as you quite rightly point out, it is not illegal to pay for a prostitute as such, it is against a law obviously to be part of a prostitution network, and it is obviously against the law as well to misappropriate company funds and some of the friends of dsk allegedly paid the bill so to speak with company funds. >> oh, okay. so if the judge decides perhaps tomorrow to charge dsk, and if he is then convicted, what might the sentence be? >> well, the maximum sentence is up for is seven years of jail, and a fine that might go up as high as $500,000, 375,000 euros, so this is what is at risk for him, and the chance of it going as high as that are remote, but even if he ends up being found guilty with a suspended jail sentence and fined, it will be obviously a terrible final chapter to his public life. >> it certainly would. obviously a man that at one point many thought would be the next president of france. terry, thank you so much for your reporting. >> all right. all right. iran refuses to let the u.n. inspectors into the nuclear facilities. should the united states be worried? former defense secretary william cohen comes out front. and the latest developments