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tv   Closing Bell  CNBC  November 8, 2013 3:00pm-4:01pm EST

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the show. nice of you to come on. thank you very much, robert. >> how about the offensive miami line go to the hunger games park. >> i like that. >> the former home depot of social media go -- >> yes, very incognito. >> nancy. thank you for watching. have a wonderful weekend, america. >> "closing bell" is next. we'll see you same time, same channel, monday. >> hi, everybody, we're into the final stretch. welcome to the "closing bell." i'm maria bartiromo at the new york stock exchange where the week seems to be ending pretty well. rally mode once again. >> amazingly. i'm bill griffeth. was today's strong jobs number one of those rare cases where good news really turned out to be good news for the stock market? we have a good bounce today. feels like a bounce rather than a true rally. and the bond market hates it. it's already anticipating tapering. the yield on the ten-year has skyrocketed 2.75%.
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that has not hurt the stock market at all today. >> of course, the question is, does this bring on tapering? or is this just one month and we go back to further weakness signs next month. >> big question. >> we'll see about that. terrible images out of the philippines in what might be the strongest storm in reporteded history to make landfall. damage, devastation and sadly death from this extraordinary typhoon is only now becoming apparent. we have a live report. we'll take you there with the latest. >> 200-mile-an-hour winds as it made landfall. to put it in perspective, last year sandy was 80-mile-an-hour winds. that was bad enough. also we're following developments in the ongoing health care law saga, a day after the president's apology to those people who cannot keep the plans they would like. after all, word today the administration is now begun the process of giving many unions a huge break in a fee that was supposed to reduce premiums for everybody else. we have a live report from washington. with reaction and analysis on that as well. >> what a doment.
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let's check markets. what has been a really busy week. the dow jones industrial average, up 15698 on the blue chip average. nasdaq where we're seeing gains as well, pretty good bounce back from yesterday, after 52 point on the nasdaq. now at 3909. s&p 500 broad-based rally there as well. 17 points higher, about 1%. sitting right now at 1764. this market gaining back a good chunk of the losses from yesterday. bob pisani, what's behind this comeback? >> the strong october jobs report again is pushing interest rates up. that's your primary trend this week. we've had a couple of bad days where rates have moved up. and it's hurt interest rate-senses ive group. there's the primary effect we've seen in the jobs report today and some things earlier in this week. take a look at utilities, for example. you can look at some of the other groups, home builders, telecom, real estate investment trust, emerging markets there's the eem on the bottom, that's
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all affected. all down for the week, not just today. because of the idea the interest rates go up, you sell off the stock market. that's not really working today. yesterday we had the worst day on two months in the s&p 500, but sectors beaten up this week -- the s&p up two days. that's a nice u-shaped recovery there. recovering sectors biotech got hit bad earlier in the week, oil stocks, the xop, it's back. airlines got hit. it's bouncing back. the zillows and netflix, they're all bouncing back. another group helping things are the financial stocks. regional banks are bouncing back because when you have higher interest rates, it increases the possibility that banks could charge more for the loans that are out there. so, this rebound, i think, is a sign of some market strength, maria. every time you get 2%, 3% drops in the broader market, you just get an immediate rebound. good sign for the bulls who are
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arguing. you're not going to see a 10% drop in markets. they've been calling for a correction for a long time. we're not even close to it. back to you. >> thanks so much, bob. everybody gather around the water cooler. here we go with "closing bell exchange." michael yoshikami joins us, as does andres gar see it yeah, russ from blackrock and our own rick santelli. welcome to all of you. michael, 204,000 jobs created last month. why is the stock market ral lig if it increases the chances the fed will slow the morphine drip? >> well, because maybe earnings will start to pick up. maybe the economy is actually healing itself. i mean, at this point we really have a mixed bag. i mean, as you correctly point out when the jobs market comes in strong, obviously fixed income rates go up and that's bad for the bond market. i'm of the relief a recovery in
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economy, while it might be bad for bonds, is great for stocks. i think as long as the rise in fixed income yields is not so vertical, it's more of a gradual trend, i think it's supportive for the stock market when good news comes in. >> andres, let's talk about putting money to work. you've got a global story here in terms of low interest rates. the ecb lowering interest rates earlier this week. what's your take on europe versus euro right now? >> i think the timing of both the payrolls number and ecb lowering rates, which is not expected, is interesting because if we are going to taper here and potentially see the ecb have to do other measures next year, basically just pass the baton from the fed to the ecb to provide further stimulus. we actually like u.s. equity stocks, like european equity stocks. the area we'd be more concerned is the emerging market because they're more rate sensitive
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because the yield continues to rise. i think it's interesting to look at the first reaction of the market when the news came out. it was actually negative for equity markets. it's interesting. i think the market is a quick learn. if you think about june, the market sold off and took a whole month for the market to realize that if the yields are going up for the right reasons, that's not bad for the market. it took a lot less time for the market to rebound. >> russ, are you inclined to still be buying in this market as we sit here near all-time highs for most of the major averages? >> i think you can still buy. with a couple of caveats. i agree with everything that's said. i think stocks can go up. if rates are rising because real rates are rising, but there are segments of the market i would avoid. the rate-sensitive bond market proxy. no price utilities, staples, these are down. this is the parts of the market that reacting negatively if real rates continue to grind higher. those are the markets of the market i want to avoid and
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emphasize more of a cyclical companies that will benefit if we get some strengthening in the global economy and in the u.s. economy. >> so, what's the trade as rates start going higher? i mean, what is the strategy knowing that at some point these rates are going to bounce and, you know, even if we do 100 basis points, they're still talking about very low rates, but you'll see a move. >> i think that's right. i think you have to look for alpha. you have to look at cyclical stocks, industrials in the u.s. financials actually make more money when the yield curve steepens. there are sectors that will benefit from this and there will be ones that will not, such as utilities. >> rick santelli, 275, back to two-month highs but are we going back to that 3% peak we hit earlier than that this year. what do you think? >> i think so. and it was on this very show, a week ago wednesday, when we kept talking about that 2.47 in tens. you remember the day. that was the bottom.
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up about a baker's dozen on the week. if you look at various charts, whether it's the week, last fed meeting, last time up at these levels, i pretty much disagree with almost all the guests. especially bob pisani. he says, we're having a bad day because rates are up. it isn't about whether rates being up are bad or good. they're inevitable. what central banks are doing will make the adjustment normalization process much more aggressive, in my opinion. whenever you get days when you get pretty decent data like today, the upside of rates is going to be bigger than days when you don't get great data in term of how they move down. and i don't think that adjustment period, that inevitable normalization is going to be very well liked by areas like stocks. but i only think that's an interim period. i think eventually it will be okay. i wish the fed could see it that way as well. >> so, are you guys betting that the fed begins tapering sooner rather than later? >> as a result of a report like today's jobs number? >> i'm not.
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i'm not. i'm of the belief that the tapering is still going to happen after whatever happens in january with the budget mess. i think that the fed understands the politics, the dysfunctional politics we have in place. we have a transition of the chairman to the chairwoman. so i don't think it's going to be sooner than later. i would be very surprised if they did anything this year. and i think that in all likelihood it's going to be more -- closer to march. >> bill, isn't the real question whether they do or not. if you have a lot more days like this, isn't it kind of a moot point? >> right. i mean, at some point the fed starts to play catch-up, as is usual, right? andres, what about you? >> i think march at this point is the highest probability of it happening, but it's not a question of when, it's if. we know that eventually they're going to have to. march is forward looking and i think the market is up for that today. >> you think things are getting better. does it come sooner than march, given today's report?
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>> to a certain extent politics come into play where you have january and february, potentially a debt ceiling discussion. i think the fed might use it as an excuse to wait until march. >> who's jumping in there, sflus. >> i think the more interesting question rather than when is how. it's not just a matter of do you go from $85 billion down to $75 billion, what else occurs? i want to know the distribution between treasuries and mortgages. my belief is they'll cut back in treasuries. do you also get a change in forward guidance? it would be a big sweetener for the market, fen auto you get a tapering, even if there's change in forward guidance. >> i have 20 seconds left, rick. i'm stunned you haven't even broached the subject of whether you believe today's jobs number. >> i'll tell you what i believe. the government shutdown would have basically raised the unemployment rate by 0.3. the big drop-off based on labor force participation rate neutralized that. it would have been 7%.
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now, the point s does that drop like all the other drops based on not counting the unemployed is not a good thing, especially when the fed is using that unemployment rate when they're using it to decide qe or interest rates. >> thanks. we appreciate it. 50 minutes before the closing bell sounds for the day. a market holding onto double digit move up 9 6 points on the dow. >> stocks are bouncing back today. we'll hear from somebody who says this market had better brace for a correction and soon. but is that a healthy thing for this stock market? we have a contrarian viewpoint coming up. also, could the surprisingly strong october jobs number force feds to consider that tapering as soon as december, a week before christmas? >> merry christmas, everybody. a day after the president's health care law apology, a new story that could boomerang on the white house. the white house may be on the path to giving many yuns a free pass on an obama care fee that was supposed to keep premiums
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lower for everybody else. we'll have details coming up on the "closing bell."
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welcome back. big jobs number today, 204,000 jobs created last month, greatly beating expectations. >> it has some wondering if it could speed up when the fed cuts back stimulus, especially if we get another jobs report like this one next month. joining us with their disagreement, craig from vining sparks says it will be january when this happens. they'll start to cut back. larry mcdonald from new edge usa says it won't be until june. and jeff cox says, it doesn't matter when they will begin tapering. craig, why do you think it happens sooner rather than later? >> good afternoon. i think you have to remember a couple of things. first of all, there's a group of people on the fed who want to end asset purchases because they're worried about financial stability. the longer they wait, the worse that problem gets. secondly, there's a group that wants purchases to be data-dependent. at the june meeting whether they were ready to taper, three-month payroll growth was at -- today
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it's at $202,000. if payroll growth is better, you better go ahead and do it. the third reason, sequester cuts are not crushing economy. we saw that in third quarter gdp report. fourth reason, government shutdown did not crush the economy. every meeting they don't taper, the markets grow more and more concerned they can't taper. so i think they want to taper sooner rather than later. >> larry, you don't think they will. you think they'll hold off on the taper. >> i don't think with a new fed chairman coming in, ms. yellen, chairwoman, i don't think they taper before she comes in in late -- probably late january/early february she'll number her seat. >> march will be her first meeting. >> yeah. so, in other words, i don't see any taper possible before that. also, the economic data, if you look at the overwhelming majority of the economic date tashgs you look at goldman economic surprise index, that's been in a two-month low recently. a lot of data has been soft. there's not enough evidence of
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recovery yet. and this time last year, we were doing well over 200,000 jobs a year. over the course of a year, we've had mixed jobs data. i just think we get a taper until may to june, maybe evlate in the year. >> wow. >> this is what i love with economics. can you do whatever you want with statistics here. >> jeff, why do you say it doesn't matter when they begin tapering? >> look, i think that the market has kind of moved past this whole taper scare. i think that's what happened back in may when bernanke first raised the issue. i think the big thing you look for is just -- the market reacted, you know, kind of knee-jerk back in may. i think they've come to grips with the fact this taper can come any time. that's not what's driving things. one of the guests from the past segment talked about forward guidance. interest rates is what it's all about. i reported this week, and i feel very strongly that the fed is going to lower -- going to
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extend forward guidance and lower that threshold for the unemployment rate. bring that down to maybe 5.5%, 6%, before they even consider raying interest rates. i think the other thing is, just qe3 hasn't had that much to do with the market moves. i really believe it's been stock market buy backs. it's been cheap financing. the market just wants to see some stability in the rate structure. and the taper thing to me is just subtrafuge. >> what about to mark's point, it gets out of their hand -- >> and they lack credibility. >> the credibility is a whole different point. i agree with that very much. i think that's why they may go ahead and taper. my initial thesis is that the taper is not going to be a big market-moving experience. i just believe the markets -- if they want to taper in december, if they want to taper in march, that's fine. what they're going to be looking for is to see highway does the
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rate structure work here. i think the fed is almost getting to the point where they're emboldened, where they just don't see those -- we're continuing to cook the books as far as inflation rates go. they kind of just feel like, look, we can go out as far as we want. also, please, guys, remember, open-ended. those were the words used for qe3. so, if they do taper and something goes wrong, they'll just turn it back around again and turn the presses back on again and keep printing again. >> reopen the spigot. >> absolutely. >> two things coming up -- one, larry points out this transition between bernanke and, perhaps, yellen which doesn't happen until after the first of the year, and budget battle comes in the middle of february. do you think they risk tapering as they worry about fiscal rangeling in washington? >> great points. one thing to remember, because it's yellen, we expect to see consistency in monetary policy
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transitioning from bernanke to yellen. had it been summers, it would have been a bigger issue. as it relates to the budget battle, absolutely, the fed cannot become a slave to fiscal policy decisions. they have to make monetary policy decisions on their own accord. so, they can't let that become a big factor. obviously, they have to take that into consideration. they can't just put off tapering because of that. they have to be beginning it at some point otherwise they lose credibility. to follow up on one thing that jeff said, what's more important, rather than when did they start tapering, is when did they end purchases? i don't think the market thinks they'll end them any time soon -- >> that will take a long time. >> go ahead, larry. >> since we started qe, since we started qe1 in november of 2008, there have been three months in that entire period where they haven't been buying bonds, reinvesting cash flows or extending the duration of the portfolio. only three months. it's pandora's box. they opened it and they can't
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get it back in. >> last word to larry. >> i would say, the key is, viewers watching us want to know how to trade this. one thing i can say with 100% certainty is the market has been wrong every single time on taper expectations. they were wrong in may. the market thought in may we had qe infinity. they were wrong in september. two weeks ago they were wrong again. they moved it out and now it's back. in other words, the way to make money is to actually fade these different moves. i'm a buyer of bonds right now. bonds have sold off hard. as the taper has moved back up. the expectations have moved back up. if they go back out again, bonds will be a great buy. i'm a buyer of gold names here. gold miners in the gdx. both of those two indices, investments will do very well if the market's wrong about the taper move up. >> gentlemen, great stuff. thank you. >> thanks so much. >> thank you, you guys. >> appreciate it. heading toward the close. 40 minutes left in the trading
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session. rally continues, up 140 points on the dow jones and s&p is up 16.5 today. i'm excited about the next segment. what do the numbers really tell us? is the economy improving as the jobs report seem to indicate? we'll get word from the ground as we hear from enter continental division head. mobile device use has tripled in the past two years. companies are certainly noticing, racing to get kid-friendly tablets to market. the question is, should kids even have their own tablet? both sides of that issue still to come on the "closing bell." le le le le store and essentially they
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welcome back. big rally on wall street. s&p bouncing back after a worst decline in a long time. dominic chu breaking down the stocks driving this. >> leading the way are the financials are the expectation that higher interest rates will translate into stronger earnings. jpmorgan chase, wells fargo, citigroup and b of a all up 2% or more. you take a look at santarus after they were agreed to be bought for $32 a share. this deal gives it two now gastroenterology drugs to strengthen its leadership. salix is up 12% on that. disney moving higher after posting better than expected
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quarterly earnings boosted in part by strength in theme parks. on the flipside, there's twitter which fell on second day of trading. hudson square began with a sell rating after pivotal research downgraded from a sell to buy on worries the stock had gotten a bit too expensive. back over to you guys. >> thank you so much, dom. october employment report exceeded expectations today. one industry seeing great need for labor is the hospitality sector. it's forecasting to add 1.3 million jobs by 2020, according to the u.s. census bureau. our next guest's company is one of the largest hotels in the world. needing to add 30,000 employees over the next year. >> that's just in the americas. the president of ihc america's president. >> good see you. >> it's suggesting we're seeing a pick up in the economy. you're in an
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economically-sensitive area of the economy. do you see that pick up as well? >> we certainly see the pick up. the hotel sector has been growing quite nicely. we saw the largest demand in july on a peak to peak from 2007 in terms of occupied rooms. >> so, are you actually seeing foreigners? is this domestic or foreign money coming into america? characterize what kind of boost you're seeing in terms of economic vitality. >> sure. it's a combination of both. one of the things that certainly we've done a lot of work across the hospitality sector working with the current administration is to boost the amount of inbound travel from parts across the world working on visa waiver and visa application processes. but it's also domestic travel, leisure and business travel, that has been building. >> i was going to ask you to break that down, business versus leisure. what about these 32,000 jobs you're going to need to fill here in the americas. can you give us a little perspective on that.
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>> certainly the hotel sector is doing its part to try to add jobs to the economy. and ihg is growing. you know, we'll be adding over 400 hotels over the next few years in just the u.s. economy alone. each hotel generates anywhere from 75 jobs on up. importantly, though, it isn't just about jobs. it's about careers. one of the things ihg does exclusively is work what we call the ihg academy. we partner with local organizations and we're collaborating like with goodwill industries. therefore, people can go and get skills and knowledge about the industry and improve their job prospects. certainly, our hotels work with those organizations and put them into the hotels for great opportunities. >> so, what kind of jobs are we talking about? what jobs are you hiring? >> they range from the hourly employee you get to know and
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enjoy when you check into the hotel and have that friend tli smile. also includes house keepers. also, it's management roles as well in our hotels. we need jobs of all different types. the industry can, therefore, be a great source of stimulating the economy by being able to not only address job growth, but also to address some of the underemployed individuals that are looking for other prospects in terms of their careers. >> let me ask you about -- you know, when i travel around the country, stay at various hotels and motels, depending on where i am, i notice this slicing and dicing of the hotel brands that exist. we just showed some of your brands. the holiday inn express, marriott has sliced and diced the same way. hilton has done the same thing. are we overdoing that? do we have too many overlapping hotel chains in this country that we're dropping right now? >> well, what ihg is doing is really looking at what your needs are when you travel away
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from home. what is your stay occasion? for holiday inn express maybe you're looking for a great value, an overnight stay. it's a rest and it's a go. on the other hand f you're staying in a crown plaza hotel, no doubt you're there for a business meeting. no doubt you're traveling for success. and we'll cater to your needs as a business traveler but also make sure you have a great night's stay and a great experience. so -- >> but does that have an impact on your margins? i noticed some of your rev par in some areas has leveled off to this point. is there just so much competition you guys are beating each other up on price right now? >> no. no one's beating up each other on price. certainly, if the consumer is getting good value, the consumer continues to use a lot of different booking mechanisms that are available both through the brands and other services. there's a lot of transparencies in terms of what's available out there. it's about value. it's really not about price. it's about delivering a great guest experience. so, people will return to your
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hotel and to your brands over and over. >> we'll leave it there. kirk, good to have you on the program. thanks so much. >> thank you. >> thank you. >> we'll see you soon. 30 minutes before the closing bell sounds for the day and the week. busy week. market's up, up 114 days on the dow. >> is the white house considering allowing some unions to avoid a key tax that pays for a big chunk of obama care? this after the now famous presidential health care law apology of last night. we'll go to washington and get that story and both sides of the issue coming up. also ahead, blackberry's new interim ceo getting a relatively low base pay but stock options potentially worth $85 million. >> way to go, john chen. wow. >> we'll hear from somebody who says that kind of pay for performance is exactly what more companies need to implement. stay with us on "closing bell." clients are always learning more
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is the white house on the path from extemperatures key obama care tax. eamon javers has been doing digging on this story. what did you find? >> the answer to that is maybe.
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it looks like last week hhs started the bureaucratic process toward removing -- exempting some unions and other organizations from what they call the reinsurance fee that's part of this overall obama care effort. is what they're saying is they floated a proposal that would exemptd certain self-insured from the obama care reinsurance fee. hhs says self-insured, self-administered plans could include plans offered by some large employers, such as city and state governments, universities as well as by some multi-employer plans. multi-employer plans, that's unions. administration officials say this could benefit some unions, but it also could benefit some people who are employees of state and local governments, university employees and others, but of course if you look at that pool, that's a pool of people who tend to vote democratic. so, that's what's got critics up in arms. a lot of critics say this is a bone thrown to unions.
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administration says, no, no this is simply something they have to do under the law to define who has to pay this so-called reinsurance fee. it's complicated, bureaucratic stuff but that's where this battle is being fought. it's a political and financial battle, bill. >> why can't everyone just avoid the fee? how come it's just these portions of people? >> right. the fee is in there in order to balance out the overall payment plans and to balance out some of these insurance programs. so, they say they need to have this fee but they needed to define who needed to pay. that's where the rubber meets the road in terms of the bureaucracy. have you to have the fee that the law requires to you define the population that has to pay it. when you define it, you're including some people and excluding some people. in this case, they're including some people who are members of unions and also some others. that's where this firestorm has come from, is whether or not that is an unfair benefit to unions by exempting some of this from this fee. >> got that? >> yeah. >> yeah. >> complicated. >> very easy to understand. i'm sure i explained it very
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clearly. >> no, it's not that complicated. you explained it perfectly. we get it now. >> let's dig deeper, though, with two sides of this story. >> rick berman executive director of center for union facts. jared bernstein is a former member of president obama's team and a cnbc contributor. good to see you. so, rick, if these sffees are n paid, do premiums go up. >> did you ask that of me? >> yes, rick. >> if these fees are not paid, the rest of the people who are in the pool, this is a pool of $25 billion are obviously going to have to pay more and they're going to have to subsidize the unions that are going to get pulled out of these plans. make no mistake about it, most of the people who would be affected by this are people in the taft/hartley plans, i heard the comment about state and local universities. this is mostly unions.
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if you want to think about unions, think of construction unions. this is where most of the impact is. >> jared, come on, this feels like politics. there's pay back, helping out some contributors. why extemperature these unions in this case? >> i certainly agree that it feels like politics. let me correct, though, a misimpression. the vast majority of these unions or taft/hartly plans, especially the construction ones rick just mentioned, are not self-administered. they have third-party administrators so they won't be exempt. we can argue if this is a political goody. i got news for you, political goodies happen and none of us like it. this is very, very small beer. if you think this is annex obama scare scandal, you're wrong. the fundamental funding of affordable care act does not depend on this reinsurance program. in fact, harry reid proposed just what maria bartiromo proposed, which is to put it off for a year or two and the republicans said no.
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>> doesn't this undercut the revenue to be raised by the new law? >> it only undercuts the revenue for the re-insurance plan, which is a temporary three-year measure to help protect insurers who have a lot more customers but probably more sick people, so they want to backstop re-insurance plan and it will very partially, partially undercut that. >> we may disagree with the concept of exempting certain entities in this case, but are we making too much of a small portion of the revenue stream, as jared suggests? >> all of these are small in the sense that taxes on anybody are not so confiscatory that it falls apart. you're talking about roughly $180 million over a two-year period which is 2015 and '16. if you think $680 million is a small number, then you're probably going to get an argument from some other people. the key here is all group plans are having to pay these taxes. whether you're in a company group plan or any other group
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plan, the only people who get subsidies are people in the exchanges, but the taxes are paid by all these plans. and the unions don't to want pay the tax on their plan. that's what it comes down to. >> jared, they wanted more than they got here. >> that's exactly the point i was going to make. in a sense, you could argue the white house gave the unions considerably less than they asked for because what they really wanted was to be able to -- even though they had self-insured plans, they wanted to be able to go into the exchanges and get the same kind of subsidies that folks up to four times the poverty rate are getting in the exchanges and the white house has said no. >> yeah, but you can't exclude certain groups from paying a tax. i mean, how do you justify that? >> maria, you know, at the end of the day, let me agree with jared, which is one of the first times in my life. >> yuns went in there, but this is everybody getting screwed by this law. nobody is happy about it.
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you even have the president apologizing over it. >> look, i actually agree with maria's point. if you're going to start going after tax exemptions, how about exemptions for capital gains and -- there are so many loopholes. i'm not justifying this one or any other but it's funny to hear you get upset over this small and not getting too put out about the trillion dollars of tax exemptions -- >> wait a minute. >> i have been pushing for tax reform for a long time now. we all have. how long have we been talking about it and nothing gets done in washington. i'm sorry, but -- >> what loopholes would you close? >> we're in a political climate where obama care is under a white hot spotlight. and the big issue was how are you going to pay for this when it's finally passed. it's passed and now we find these little germs in here that exempting certain entities from paying, so why put yourself out
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there and leave yourself vulnerable to criticism when everybody's watching -- >> you know it's not right up. know it's not right. >> i think you both make a very fair point. what i will say is that, remember, they're not getting what they asked for. we're getting a very small piece of it here. and the basic tax mechanism that fund the bill are still whole and complete. let's not overdo this. but your underlying point about a favor here, i think, yeah, i think you have something there. >> wow. bernstein and berman agreeing. >> wow, they actually agree. gentlemen, thanks. >> thanks, guys. >> have a good weekend. heading toward the close. 18 minutes left in the trading session here. we're actually strengthening right now. the dow's up 132 points. the nasdaq up 56 points after that drubbing of yesterday. a lot of volatility among technology stocks. >> that's where the momentum has been. momentum stocks have been losing -- losing momentum recently. up next, find out if that could be a warning for this market. >> also ahead, why watch a college football game with ordinary announcers when you can
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where is the big mode? momentum stocks at nasdaq have been driving this rally all year. some of those names have had a rough week. >> sheila looks at what that means for the broader market right now. >> hey, guys, let's talk about this lousy week for momentum losers. tesla topping the list, down more than 15% this week. a one-two punch of weak earnings and also a fire in one of their cars. green mountain coffee/baidu, and regenron rounding out the list. these momentum stocks have been
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driving up the market. tesla up 40% year to date despite the pull back this week. here's also why it matters. momentum is usually a sign the market may be shifting, especially if you see a breakdown in momentum stocks. i've been talking to a lot of traders this about. they say it's a move they're watching very, very closely, watching the quality of the flows. we may not see a pull back in the market until next year. remember, fourth quarter for stocks is pretty seasonally strong so traders don't think we'll see a bunch of a pull back right now. watch out next year, especially when you see momentum names lose steam. how do you play all of this? stock redler says now is the time to be light and flexible. he reminds investors cash is a place to be in. mark wolf at gray wolf capital told me, when you're talking about the nasdaq, have you to be careful here. we are definitely seeing signs things are getting bubbly, maybe hitting a top. he's looking at nasdaq 3200 as
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next stop down. that's 4.5% pull back. perhaps some room for some names to go down more, you guys. >> sheila, thank you so much. >> we have ten minutes before the closing bell sounds for the week pap a market holding on strong. in fact, it was this time yesterday, decelerating. we saw selling accelerate and today we're seeing the opposite. >> which was krshgt, the selloff or big gains today? opportunities aren't always obvious.
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breaking news with tyler mathisen. >> an entering story out of australia where vodafone australia has confirmed reports that an ipad burst into flames in a store in canberra causing the fire department to be called in and the store to be evacuated. this after the device, which was connected to a charging port,
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apparently malfunctioned and burst into flames. again, vodafone confirming this report. we've reached out to apple. no word back from there. though there are reports that apple did pick up the device to see what the cause of that malfunction was. so, the store evacuated, no one hurt. this, of course, coming on the heels of yesterday's report about that tesla device battery that burst into flames in that car. bill, back to you. >> what is going on. >> yeah. >> thank you. >> thank you so much, ty. >> at least nobody was hurt. >> we want to oint out, this market is moving higher. $1 billion to buy at the close here. we'll probably end higher than we are right now. joining us, david darst, j.j. burns from j.j. burns and company. what's going on with this rally? >> this is the what's not to like market. >> they love the jobs report. >> china doing better, pmi, european central bank -- >> cutting rates. >> the jobs number came in
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nicely. upward revision bill by 60,000 jobs. >> august and september, sflit. >> what you really need to see is the consumer to kick in. that's been the laggard. with the jobbing doing better -- now, you had the consumer confidence fall off a cliff from 80 down to 71 on the conference board number this past week. this is the what's not to like market. we've said enjoy, it but it's a little too quiet. anybody with parents, it's like kids playing upstairs where there's no sound. >> what about that, because the truth is, as-s we went into the fourth quarter weaker than we thought. we had the government shutdown. we know retail has been under pressure. do you believe this, that you want to put money to work here? do you actually think we are receiving better economic data. >> i think the economic data is positive. what's happening is pundits are looking at glass half empty. the jobs report is exceptionally good. people are not looking in the
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last two months. last two months have shown increase of revisions going higher. in addition, the gdp number of 2.81 looking like 2.9 when you round it up. the reality is, is that people are having wages come up a little bit higher. and also coming to the holiday shopping season, you have gas prices down 35 cents, which pulls in millions if not a couple billion worth of money into the economy. >> morgan stanley to europe, to u.s. and to japan, maria. we added all three on the equity side. >> europe -- >> i don't want to be too wonky but 12, 13 points away from the all-time high on the dow on this jobs report, but yet the bond market is acting like tapering could be sooner rather than later. >> usually the market would sell off on a december taper. this is great news. watch out for a mult-up. be prepared to leave the party if it starts to get too crazy between now and year end.
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>> we're not there already? >> you've seen the ipos. >> we're talking about 15 times earnings right now. when does it become too expensive? >> i think you've got a lot more to go. looking at forward earnings going forward, you could have mu melt-up. about 10% or 11% return. in addition to the global area, more investment happening in europe. albeit, negative sentiment that happened with pull back in business and business continuation planning. but the reality is, is we have $70 billion of debt that's been -- that's come come on to existence in emerging markets. emerging markets are starting to sizzle up. this is not just happening domestically, it's happening internationally. >> that's why you say -- >> va absolute men and women, veterans day, 12.5 million people have served in uniform for the united states, including
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females. >> thank you, gentlemen. >> we'll be back with the closing countdown. >> are we on the verge of a correction or not? somebody here says yes. even though that means the dow would need to fall nearly 1600 points. he says, it will be healthy for the market. capital to make it happen? without the thinking that makes it real? what's a vision without the expertise to execute it... and the financing to make it grow? whatever your goal, it can change more than your business. it can change the future. that's why, at barclays, our ambition is to always realize yours. because what you don't know, can hurt you.urance. what if you didn't know that posting your travel plans online may attract burglars? [woman] off to hawaii! what if you didn't know that as the price of gold rises,
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[ bell ringing, applause ] five tech stocks with more than a 10%... change in after-market trading. ♪ all the tech stocks with a market cap... of at least 50 billion... are up on the day. 12 low-volume stocks... breaking into 52-week highs. six upcoming earnings plays... that recently gapped up. [ male announcer ] now the world is your trading floor. get real-time market scanning wherever you are with the mobile trader app. from td ameritrade. welcome back. where you been?
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you missed the melt-up. the dow up 153 points. we're in record territory all of a sudden. this is for the week, for the week, up less than 1%. still, if we stay right here, we need to be at 15,746.88 to hit all-time high. we talk about twitter yesterday. what about today? pulling back. down almost 8% right now from yesterday's close. we're at $4 1.34. warren myers, what is going on with this melt-up. >> mirror image of yesterday. twitter was strong, overall market sold off and now it looks like a complete reversal. it's very interesting. i think when the jobs number came out this morning, the nonfarm payroll number, people a little concerned that that might be a push for tapering. >> bond market embraced that idea. >> exactly. >> are you skeptical of this rally? >> i'm not skeptical at all. we were talking, next week with light economic data here in the u.s. with this kind of momentum today, we might have a
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continuation in the next week and nothing to stop it. >> thanks, warren. we are finishing very strong. we will be in record territory for the dow industrials. we didn't see that coming 15 minutes ago. it's been just in the last few minutes. stay tuned. one of our guest says a correction is exactly what this market needs. that's coming up on the second hour of the "closing bell" with maria. have a good weekend. >> and it is 4:00 on wall street. do you know where your money is? hi, everybody, welcome back to the "closing bell." i'm maria bartiromo on the floor of the new york stock exchange. stocks soaring as the dow closes at another all-time high. momentum picked up in the final few minutes of trading. dow jones up 167 points tonight in unchartered territory of 15,761 and change. an all-time closing high for the blue chip. nasdaq up 61 points, big day on top of the drubbing it took yesterday. up almost


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