Stock Market Rally: How Long Can It Last?

Mike Santoli analyzes the morning business headlines.
6:51 | 04/01/13

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Transcript for Stock Market Rally: How Long Can It Last?
-- watch live coverage of the opening. Why are they out there because that show has been on the air for fifteen years. Picking at numerous awards along the way and today the -- of kicking a -- for today Monday April 1. Everyone and then Cutler in New York has first quarter is coming to an end the SP 500 -- -- an all time highs the futures. Flat today ahead of some new manufacturing numbers -- cent toll from Yahoo! finance joins us now with business headlines Mike good Monday morning to you. Good morning are still new manufacturing it was -- coming up this morning what are we looking for. I still strong but maybe a little bit of a moderating pace from February's is -- -- -- from march it seems as if US manufacturing sector is in. Moderate growth mode and now that's pretty much -- Wall Street's looking for here overnight. We actually got a number lot of folks look at pretty closely which is a proxy for Chinese manufacturing. Which rebounded a little bit but not quite as much as people were estimating so. Right now we're in this mode where the economy seems to be you know -- kind of slow and steady. But definitely not accelerating at the moment what -- GDP -- that factor into these manufacturing numbers. Well that the quarter just ended actually people have been raising their estimates four GDP. Somewhere above two and a half percent or so so accidents picking up from late 2012 mostly that's because. The consumer has held in relatively well he had personal income and spending numbers that we're pretty good. -- -- -- Part of the last quarter and also you know the income businesses rebuilding inventories so it's not a fast growth but it's definitely a pick up from what was really a stall speed. Type GDP episode in the fourth. Quarter in general terms the temperature of the market right now in this quarter obvious it's been one of the strongest -- the Dow the S&P 500 breaking their all time highs. On the Dow's been on this four month rally in the S&P five the NASDAQ also a five month rally. -- this bull market going pretty strong I mean does this have some serious legs because I know in the past we've looked at these things possibly ending not maybe a month or two -- -- You know it. It still seems to be pretty well supported by a lot of the stuff that's already been going on and actually been driving the market up 10% year to date which is. Pretty strong corporate profits although the -- for profit growth is gonna slow here. And really it's a lot about easy money around the world low interest rates and investors feeling a little more confident taking a little more risk that really has been the whole story meanwhile big companies. Continue to go out there by their own stock and try to do some deal so it seems as if you know it's good enough to kind of stay near these levels the thing I would caution though is when you've had a first quarter of -- year that's been up 10%. The rest of the year has not really necessarily been a blockbuster in terms of further gains so maybe. A large portion of whatever gains might expect for 2013. Are in the books but does it mean if things fall apart it just means -- we have to go sideways or down a little bit just to rebuild a little interest in the market so is Europe concerns still down the -- -- -- that kind of moved to the back of investors' heads. You know it's always a concern it's more about sort of seeing whether there's imminent danger out there and you know Cyprus was a little bit of a scare but small enough and unique enough to kind of be written off at least for long term investors -- that people are talking about. Other parts of Central Europe that might. Show some cracks it's there and the problem is almost every summer since the financial crisis Europe has actually -- attention. So we've had to listen to it and that might be what people are flinching. Against this time in advance you know it seems like the policies are there to try to contain things more than they were in prior years but it's definitely something that's I think. High on the list of things for people to be worried about. Tantrum the financials. Spurt early bird or very concerned about the euros in the seventeen countries when talking about Herbalife. Billionaire investor Carl Icahn. Obviously always used to make headlines this time -- it's not about its -- shares with Herbalife not about Dallas and everybody seems to be coming out on top after -- bought a lot of shares in the company so what exactly happened with this deal. Well it's all about when people starting lane started -- their best so initially we we became aware of the Herbalife story mostly because. Bill -- and it was a big hedge fund manager came out with a very splashy. Thesis that said this company's potentially worthless he thinks it's kind of -- pyramid scheme and and basically the Kangas and hold up -- after. He was betting against the stock the stock fell lot he's in the money on that trade but then after it started to fall Carl -- as well as Daniel -- another hedge fund manager. Bought stock near the lows they are now showing on paper gains Daniel oversold if so for the moment because of when everybody started to traded from one side or the other. People of made money it doesn't really tell us much though about the outcome of how this all goes in terms of whether Herbalife is gonna prove itself to be a viable business whether in fact you know ultimately bill -- who will be closer to the truth when he says look. Federal Trade Commission should come in and -- down these multi level marketers of these nutritional products or not -- at the moment. Seems like there's little playground spat among hedge fund managers nobody really been a loser just yet. -- -- when you -- Obviously. April -- Day today and Google is has a lot of fun with all their holidays and today no exception to that they announced they were taking away YouTube. Visit the site was just in eight your contest -- the world's best video and that it would be shutting down YouTube today. If you didn't check calendars obviously my -- heartbroken clearly that's not the case but you know else hears someone ask you -- Is -- finally making some money for Google because I mean he had been -- sort of a loss leader for the tech giant. -- -- they haven't may have priority out of actually turning no direct profit off of YouTube they wanted to build revenues -- musicians get the brands. Advertisers on the platform. And getting used to it I think we're at a point now -- I mean Google is now profitable with YouTube in a moderate way but they're really still focused on revenues it is from now on. Going to be they'll profit driver at least that's the way that the analysts -- modeling it at the moment so yeah it was a long time that under Google's ownership. -- was basically being intimidated and built. And essentially tried to make it -- online destination. For video based advertising and that's kind of where it is right now it's unclear. Whether the kind of growth rates it's seen and in eyeballs and and not in advertising -- gonna continue but it's definitely now are turning a profit although he wouldn't call it Google's main profit center by any stretch. All right was long as those cat videos keep making their way and YouTube I think they've got a good business model when let's look at -- -- on way back at her right exactly. The Dow about flat -- at 141577. -- Angela from Yahoo! studios thank you so much good Monday all right thank you.

This transcript has been automatically generated and may not be 100% accurate.

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