Not too many years ago when dreams werent coming true id reach for inspiration, sometimes it would be you id hear you on the radio i sure did like your song its good to know theres still you with country boys around imus in the morning dont you love it . You cant take your eyes off it, can you . Well dont because the dow looks set to go up some more. Good morning, everybody. And enjoy the ride while it lasts, the indicators suggest that when the market opens in just a couple of minutes, stocks will go up some more. The dow may get close to 14,300 and all of those tech stocks will carry the nasdaq to the best level since the fall of 2000. I do not know how stocks will close today and i dont know how long these record levels will hold, but after five years of financial misery, maybe you can crack a smile. On todays program, were looking for new highs early on and yes, we are going to talk to the rally deniers. Were fair and balanced. This is fun. Varney company is about to begin. [ indistinct shouting ] [ indistinct shoutin] [ male announcer ] time and sales data. Splitsecond stats. [ indistinct shouting ] its so close to the options floor. [ indistinct shouting, bell dinging ]. Youll bust your brain box. All onhinkorswim from td ameritrade. All right. Good morning everybody, its wednesday, march 6th and again were looking at an all time high for the dow another one. Ive got to raise the question and i will. Will it last . There are naysayers, it goes back to ben bernanke printing. Plenty of people out this saying once the printing stops, the rally is over. Eventually of course he will have to stop printing, but i would urge everybody, watch what happens a few minutes from now, it looks like another high right at the opening bell. Today, politics shut down as the Winter Weather has closed federal offices today. The storm dumped ten inches in chicago, hundreds of flights canceled. D. C. The hit today and then the new england area gets pummelled by several inches tomorrow. Federal government closes, dow goes up. How about at that . You havent heard, hugo chavez is dead. Venezuelas vicepresident said yesterday he died after a twoyear battle with cancer. No Financial Impact whatsoever. This is a political shift. Venezuelas home to one of the biggest oil reserves in the world. The price of oil didnt budge on the news. Right now its at 90 per barrel. Lets get back to the rally. Another high on the dow just minutes away in all likelihood, will it last . What happens when ben stops printing and when might that happen . The opening bell is next. [ shapiro ] at legalzoom, you can take care of virtually all your imptant legal matters in just minutes. Protect youramily. And launch your dreams. At legalzoom. Com we put the law on your side. Announcer you never know when, but thieves can steal your identity and turn your life upside down. Hi. Hi. 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Call the number on your screen now here we go again, everybody, a minute to the opening bell and i will tell you now, the dow is going to go up at that opening bell, but hold on. Joining us now is ed butowsky and hes here. Are you going to pour cold water on this and tell them to sell. Not the a chance. Stocks that make highs make higher highs and probably 8 to 10 higher from here. Stuart whoa. 8 to 10 higher from here. Over time. Stuart were 14,253 and odd on 10 , another 1,400 points and looking at 16,000. Stocks are still cheap relative hold that thought ed butowsky, hold that thought. Were coming up on the opening bell. As you know, there are indicators that point towards what will happen when the real trading starts. They call it the futures. Okay . And right now those futures, the future indicators suggesting a gain of maybe 60 points for the dow. That would take it above 14,300 right there from the getgo this wednesday morning. And also, weve got the nasdaq, the home to big tech stocks. The nasdaq moved to a highest level since november of 2000. When the dotcom bubble was bursting and the nasdaq was coming down. Well, were back to that level. All right. Lets see what happens now. The opening when you hear that bell ring, that means that theyre getting ready to actually start trading. Now its precisely 9 30 on our atomic clock and theyre trading. And oh, my goodness, buy something, somebody. Yes, thank you very much. The dow is now up 7 points and the opening trend, i was right, it is higher. 14,269 and counting. 14,271. Away we go. Now, the big stock thats really driven this rally had a lot to do with driving the dow higher, its ibm. Lets bring in nicole right from the start here, what has ibm contributed to this rally . Give me a number. Okay, looking at two things, what has the rally over since march 2009. By the way, were breaking through the highs. Almost a thousand dow points, its so heavily weighted in the index. For in year, about 121 dow points, and right now, were seeing ibm up about one third of 1 . Stuart hold on a second, nicole. Let me get this right. Youre saying from that low in march of 2000, ibm alone has contributed 1,000 points of the rally to where we are now, right . Yeah, close to it because its so heavily weighted. And right now, look, were approaching 14,300. Stuart yeah. Nicole a new intraday record high for getting closer to those levels, a couple points away. Stuart 14,300. Nicole 143, 143. Stuart lets not celebrate too wildly ed butowsky. Hold on a second. Two more stocks we follow closely, names you know. J. C. Penney, wall street journal says pennys board considering selling the company or replacing the chief ron johnson if the drop in sales is not reversed. And microsoft, the eu, european union, those pagans losers and moth, theyre failing to offer web browser, the stock is down on that news just as the market goes up. In my opinion this rally has been brought to you by fed chairman ben bernanke, ed butowsky is with us. Am i right. Partly. Stuart this is a fed, Federal Reserve fueled rally. In many different ways. This market is higher for a number of reasons and when you see the printing of money you see lower rates as you point out all the time correctly and allows companies to get better profits because the borrowing costs are lower, in addition, stocks are cheap based on the expected earnings and here is the key. Stocks right now are about 17 below where they should be based on expected earnings. But because Interest Rates are so low, stocks should be overvalued. Thats why im going to be proven right on this. Stocks are going to go significantly higher from here, because theres no where else to go and theyre cheap, but one other thing i want to point out. Nicole at the beginning here where we saw the dow was down and moved back up. One point move on a dow stock is 7 points on the dow jones, so if every stock went up one point, 30 stocks, wed see 225 point move on the dow so you have to look at every individual stock. To repeat, you said earlier, were up for 8 to 10 more going up 16,000 on the dow this year . Barring any geopolitical event, anything in europe, anything that will negatively impact earnings, that will change, but right now, stocks are cheap and then the rally is going to continue. Now, it occurs to me, that this market which is now up 45 points, shy of 143 as we speak, this market is ignoring president obama. You know what im talking about. Exactly. The president threatened armageddon and getting 2. 3 budget cuts and the economy just tanks. 750,000 jobs. The markets totally ignore that. Well, it has ignored it and it also, stock prices should have moved up a lot more earlier on, you know, in the last couple of years and its been held back because of this president , because of his policies. Were only now starting to see the real price start to take place and stocks should have been much higher year over year, but because of the rhetoric and negative Business Climate and confusion about earnings and having little clarity, stock prices didnt move. We only are making up for what he we should have been up previously. The naysayers, a lot of of them. Saying that this is all ben bernanke printing money and when he quits printing or hints hes not going to print much more, thats when stocks come down, you agree with that . Temporarily and theyll go back up. Theres real earnings and real Balance Sheet earnings and 44 of the earnings of the dow stocks or excuse me growth comes from outside the United States its not a u. S. Centric decision. These Companies Get a lot of growth outside of the United States. Well see printing stop at some point. I dont know when, bernanke says only when we see unemployment at 6 , thats not happening. We might be printing for a long, long time. Stuart our poor viewers are sitting out there. They see the stock market at a record high. Thats right. Stuart they see corporate profits as youve described them as nice and strong, real good stuff. And yet, boots on the ground, unemployment very high, debt through the roof. Yeah. Stuart the economy is not growing at all. Thats right. Stuart what, how are our viewers suppose today explain this. How would you like to do this for a living . Ive got gray hair because its confusing, because its very difficult it separate the economy from the stock market. You have to do it. Stuart yeah, yeah, youve got to separate ideology of the president. Thats right. Stuart separate out the economy and invest on what . Expected earnings. Always look at earnings where Interest Rates are and Everything Else is noise. Stuart how can the economy, which is on its back, generate really good profits for corporations . And dont tell me this is all overseas. Its not all overseas. Stuart europe is in recession, india is hardly growing at all. Its based on expected earnings and i tell you right now were in a Global Economy and i cant stand the policies of this president and this administration, but you want to make money, put your money in stocks. Stuart you know, there is such a thing as videotape and youre on it. I hop so. Stuart as this wednesday, whats the date. March 6th is it, thats right. You said were up to 16,000 fairly soon, straight up. Did i say that . Yeah, you did. All right, ed, thank you very much indeed. Back to nicole, the dow hits the high, but i want to know about google. Where did it open today. Nicole well, it traded at a new all time high for google. Traded as high as 844. And since pulled back. However, another day and another alltime high for google. Stuart okay, what weve got on the dow at the moment then, im sorry, give me best buy . Best buy is jumping and were doing best buy because its jumping and this is one we watch and its upgraded at jeffries and the price target is 24. And thats why youre seeing it up 4 , when we talk about google. Dont forget, this was basically a 85 ipo and here it is at 840. Stuart i remember it well. Nicole what a run. Stuart now the upsued move for the dow appears to have stalled at the moment. Were up 43 points and weve bumped up to 14, 300 and stayed there. Were up and a bit of a stall as we so to speak, but thats a new intraday high for the dow. Gas prices, lets get to that, down again. National average dropped a penny to 3. 72. That means gas regular, down 6 cents in a week. Snow or no snow. House Speaker John Boehner will try to avoid a government shut down by carrying spending cuts through to september and allowing more flexibility to the pentagon. And allow the military to decide where the cuts hit. Hes going to introduce a bill today that it allows just as the storm barrels towards the nations capital. He introduces this bill and even though congress is even though the federal offices are going be to be shut down, congress will be in session. He introduces this very important bill today. It would avoid a government shutdown. That is what he is going to do. Well, perhaps president obama doesnt like that plan for flexibility. Hes threatened to veto it. Once again, the theme of maximum pain has come up. This time in an internal email at the Agriculture Department. Well have the email for you and all the tough questions of the ag secretary faced on capitol hill yesterday. The judge is going to discuss this top of the coming hour. All right. It is wednesday morning, new high for the dow. Heres the 7 early movers. Disappointing sales and a weak profit forecast for staples. That stock is down. The drone maker, here is an interesting stock, aerovirnment, drones out of fashion, down. And fox businesss parent news corp. Introduced the first tablet computer built specifically for the classroom and news corp. Has broken through 30 a share. Did that yesterday, up a bit more today. Higher profits, disappointing outlook from American Eagle its at 20 a share, down 11 . Boeing says, it can move, quote, really fast to get the dreamliner back into the skies, once the battery issue is resolved. 78 on boeing now. Dells largest external shareholder demanding that the pc maker open its books. Nothing happening with the stock. Its at 14. Watch out amazon, google began looking at same day delivery with retailers. Down 3 bucks not much of a drop. Ill check amazon later for u now check the big board, yeah, we stalled. We moved up at the opening bell, new intraday highs and touch 143 and now were up just 35 points. Time is money. 60 seconds here we go. First off, mike reagan, well ask him what his dad did to get along with a democratled house. What did he do that president obama is not doing to get along with the republicans. Hes going to join us, again, the top of the hour and we also have a football coach who has two of the last six super bowls, tom kofflin, new york giants, how he changed his management style to fit the times and he won, won big. 10 35 hes on. And taco bell rolling out a new taco he with a flavored doritos shell. Theyre expecting a big jump of sales in colorado where pot now legal . Just a joke. Check the price of oil, where are we . At 90 bucks a barrel, holding at 90 still. The dow hits a new record. We will ask a question is this gambling . And is gambling different from investing . Are people in this for the thrill . Hear the music . Dr. Keith ablow on his way in and he answers the question, gambling or investing next. I hope youll understand that i was born a gambling man clients are always learning more to make their money do more. ann to help me plan my next move, i take scottrades free, inbranch seminars. Plus, their live webinars. I use daily market commentary to improve my strategy. And my local scottrade Office Guides my learning every step of the way. Because they know i dont trade like everybody. I trade like me. Im with scottrade. announcer scottrade. Ranked highest in Customer Loyalty for brokerage and investment companies. train horn vo wherever our trains go, the economy comes to life. Norfolk southern. One line, infinite possibilities. Look at the dow, we have indeed stalled, shy of 14,300, but this is what is a new if we closed here, it will be a new closing high, okay . We are up this morning. Now, ive got a question for you. What is the fine line between gambling and investing . Are you gambling when you buy stocks . The man who knows the answer is dr. Keith ablow and fortunately, hes with us right now. Dr. Keith, welcome. Thanks for having me. Stuart here is where i see it, gambling is different from investing. Gambling, you roll the dice and you could lose it all, 100 of your bet and its pure luck. Investing, you roll the dice and you can lose a large proportion of your bet, but not everything, and youre investing on the basis of knowledge. I say there is a difference. Theres definitely a difference, there are some gamblers, for instance, people who know horse racing say look, im doing it based on expertise and maybe a few who are. But theyre rare. The thing about investing in Financial Markets is that, yes, its based on knowledge. The question is, how much knowledge do you really have and how much can you penetrate through the inside game of these companies and of the government and the rest of it such that you can really know that this is better than pulling the arm on a slot machine . Do you think that people are addicted to investing in stocks, that they get a thrill out of it . Do you think thats well, here, i do think that they get a thrill out of it and i think in the same way that some folks think theyre lucky because they win at gambling, i think that theyre investors, not the biggest ones, but many, many who are smaller investors who believe that shows either theyre lucky or theyre very, very smart. So, its addictive because you start to think, boy, im like magic, or i just get a 6th sense for in stuff. Thats where you can lose a lot of money because anyone will tell you, the most successful investor is doing it in a very disciplined fashion. No emotion about it at all. They have certain targets, they sell, the