Transcripts For CNBC Closing Bell 20130107

Parts. Goes a long way. I know because my family is from those parts. Thanks for watching. Do you say redneckonized . Thank you. Hi, everybody. Good afternoon. Welcome to the closing bell. Im Maria Bartiromo at the new york stock exchange. The market down today. Todd, welcome back. Happy new year. Im tyler mathisen. Bill griffin will be back with us tomorrow. In the markets now, lets look where the dow stands. Its down 53 points. Nasdaq right now in percentage terms with a slightly more modest loss down six points. 6. 5 at 3095. About a fifth of a percentage point lower. The s p 500 at the moment is down by about 5 2 3 points at 1460. That is a little better than a 1 3 of a percent decline. Is this the beginning of the bigger move lower . Brian belski is preventing for a move of about 8 from here for the s p 500. But does the rest of our panel agree . Joining us along with brian is Peter Anderson of Congress Asset management and our own Steve Leisman and rick santelli. You think its going to be another good year of gains. Target on the s p 1575. Defend it. Well, we do. Ill remind everyone we were at 1420 last year. We base all of our analysis on fundamentals. You were off by a point. Im sorry. A whole point. Seriously. Im sorry. But we think the fundamental condition of u. S. Stocks remains very strong. If you take a look at the Balance Sheet strength, earning stability. Fourth quarter earnings i think was a surprise to the upside. Companies have been conservative of all these great things. No that were done with this fiscal cliff situation, i think we do have a bit of wind behind our sails. However, we dont think that 2013 will be as strong as 2012 given the fact that so many people were underexposed stocks in 2012. Weve had this kind of natural rotation back in. I think 2013 will be positive. But are we really done is the question. Weve got the debt ceiling debt bait coming. Peter, whats your take . Well, i think the debt ceiling, weve been through that before once before. This second time i think its going to be actually maybe too much to say a piece of cake, but weve seen it before and i think that we will sail through that. And earnings, im looking at earnings to be probably sideways this past quarter. Going into 2013 i think its going to be one heck of a year. You mean a strong year . Yes. Strong. And you think stocks react to that . I do. I think they will react very strongly. I think theres a lot of risk, uncertainty out there. But on top of that, i think you will see stock buybacks. And i also still think you will see some dividend increases which are great for investors. Brian, do you think its going to be a piece of cake the debt ceiling discussions . What . Thats what he said. This has been a market place that since 2007, 2008, that reacts to every little sound bite. Were going to see some volatility during every time of situation or news bit that comes out of washington. This is not going to be an easy year. But what we will say is that stocks in general are exquisitely priced number one. Number two, theyre providing income for those portfolios that are beginning to lose money in their bond positions the second half of the year. 2012 was still a net positive year for bonds. But the second half of the year was the first sixmonth period where Bond Investors were actually losing money. We need to see more of that before we see the massive rotation out of bonds and into stocks. That will really catapult the second bull market. You have to believe that at the end of the year, the fact that dividend taxes go to 20 rather than much higher, some expectations, and Capital Gains taxes also 20 . Good number there. But steve, lets talk about the uncertainty ahead. Steve leisman, youve got the debt ceiling talks, a lot of people expect a big fight here. What do we need to know and focus on on the impact on stocks . The first is the disagreement over whether or not were going to reach an Employment Level that will allow the government to stop buying assets. This time last year the fed was predicting an Unemployment Rate for the Fourth Quarter of the next year or 2012. That was up almost a percentage point higher than it ended up being. So the fed was too pessimistic about unemployment. If you do get a fast improvement in unemployment, then the fed may end up stopping easing faster than the market believes. The second thing were finding out is a growing concern on the Federal Reserve about the exit strategy and the kind of impact it would have on the feds Balance Sheet. If higher rates forces to take losses. And the kind of payments it will have to make to banks on interest on reserves. Those are two things. On the debt ceiling, i guess i just point out that the markets kind of been twice burned on this on the pessimistic side. Whether or not this is the Battle Royale weve been waiting for here, yob. But two out of the last three times you were better off sitting there and holding unless you had exquisite timing and were able to get in at the bottom. Lets turn to you rick santelli. I want to get your reaction to what peter says. He says on the debt ceiling weve been here before. We know how this ultimately plays out. And in his words, i dont mean to overstate your case, peter. You did it brilliantly before. Its going to be a piece of cake. How do you see it and traders youre talking to see it . They think the rotation out of fixed income into equities is definitely going to continue. But its going to be like turning a barge in a very small waterway and its going to take a lot of time. Now, just for the first week we see yields are up on the tens. Stocks are up about 2 . But dont look for that pace obviously to continue. And in terms of the debt ceiling, i actually in part agree with your guess. I dont think thats going to be the definitive issue. I think the tester is going to be the sequester. In my opinion. Because thats where the spending cuts are, and i agree with todays oped. Thats the only spending cuts in sight. Do you think todays decline, brian, is partly just sort of lets take a breather . One trader i was talking to earlier said one of the issues today is theres just a lack of buyers. Not heavy selling going on. Just a lack of buyers. Everyones coming back to work, too, for the first fulltime. First full monday of the year. That may be part of it. Volumes low. Maybe decisions are taken off the table in terms of shortterm. But longer term people are much more positively disposed now than they were two months ago. Funny thing, rising price stocks make people feel better. Peter give me your best pick for 2013. How about Madison Square garden . Just had some great news on the hockey break there. And in terms of valuations, the deeply valued and undervalued stock, look at Something Like that. Anything that has risk of if they could be bought out or leveraged buyout. Anything like that this year, i think investors should start looking at. Because cash is at an alltime high as we know. And people will not want to take high risk situations. So well look at where they will be bought back. Thank you very much. Great conversation. We appreciate your time tonight. Meanwhile, bank stocks dragging down the averages. A lot of news out of that sector today. Lets get to kayla tausche. Hi. News this week of banks settling lawsuits started out as a positive for investors. If youve got litigation issues quantified and off the books. But the stocks turned south on how much they would shave from the books. 8. 5 billion suit. And the Federal Reserve was detailed midday. It will cost 3. 3 billion in cash and 5. 5 billion in mortgages. Sun trust, u. S. Bancorp, and ci citi. Another 10 billion in fannie mae. The stock popped premarket. The bank must pony up 2 million in cash. The bank said it will be modestly profitable for q4 next week. But it could swallow the quarter. Considering that wouldnt be the first first time it would wipe away nearly all of its earnings. Thank you so much. Kayla tausche with the latest there. Well be watching those banks. We are about 50 minutes before the closing bell sounds. The dow down about 55 points right now. As we close down on the next crisis, Mitch Mcconnell has a simple question. We will tell you what it is and how those on the other side of the aisle are answering it. And then states are scrambling for revenue and you could see the miles you drive get taxed. This has some people up in arms. Well look under the hood on that debate. Thats coming up on the program. Then it is the biggest night in college football. The bcs championship and the champion will be crowned. Wait until you hear the unbelievable amount of money this sport and tonights game bring in. Then decide if you think the athlete who is are playing should be compensated. [ male announcer ] how do you turn an entrepreneurs dream. Into a scooter that talks to the cloud . Or turn 30million artifacts. Into a hightech masterpiece . Whatever your business challenge, dell has the technology and services to help you solve it. [ male announcer ] how could switchgrass in argentina, change engineering in dubai, aluminum production in south africa, and the Aerospace Industry in the u. S. . At t. Rowe price, we understand the connections of a complex, global economy. Its just one reason over 75 of our mutual funds beat their 10year lipper average. T. Rowe price. Invest with confidence. Request a prospectus or summary prospectus with investment information, risks, fees and expenses to read and consider carefully before investing. Welcome back. Economists are debating now if worries about the fiscal cliff impacted hiring as businesses added just 155,000 jobs in the month of december. But the jobs market is facing another danger. That of course the debt ceiling. And if we see another standoff on this one, a rank rous one, how bad will it hurt . We have tom stemburg now a partner at Highland Consumer Fund. And she was a member of president obamas council of jobs and competitiveness. So where does the debt ceiling rate with the fiscal cliff game we saw . Miss tyson, let me begin with you. If i understand your view correctly, you feel we have a situation in the economy where too much austerity would do the economy a great deal of damage right now. But an awful lot of people on the other side of the aisle say if not now, if we dont address spending now, when are we going to do it and that we have been saying fundamentally the same thing will take care of spending later, later, later and it never gets taken care of . Well, i think that it is correct that we dont need fiscal austerity now, but we do need to a longterm plan to bring spending growth down in the future. You know, if we had a political system that worked efficiently, we could have both. We could have a plan, a longterm plan, maybe with some triggers. The Federal Reserve has triggered its Interest Rate policy based on what the economy is doing. So why not put in some spending cuts now, trigger them in gradually as the economy recovers . We could do that. Tom, let me get your take on this. I think were in a crisis here. Our house is burning. As dick just pointed out on your air. Weve got an entity taking in 2. 2 trillion a year and spending 8. 8 trillion a year. So i think we got to begin to attack this today. And the real big issues here are entitlements. And i think weve got to look at entitlements. It seems to me that senator alexander has other solutions such as means testing for medicaid and medicare. Such as raising the retirement age, not today but a few years down the road by a couple years. To account for a longer lifetime and longer working career. These things arent that hard. I cant for the life of me understand why the Obama Administration doesnt embrace the ideas and move forward. Has this impacted the business climate, tom . What are you hearing from ceos and managers of businesses youre talking to. Do you think were done with the uncertainty . No. I think we still see well, when you hear people like Speaker Pelosi talking about increasing taxes even further, when we already raised taxes by i think a little over a trillion dollars, the notion of more tax increases scares people. By the way, when we talk about those were forgetting about the medicare tax that came from obama care. We forget about the investment tax of 3. 8 if youre in the real estate business. Or the investment business. We forget about the fact weve taken now the fica reductions down. You cant suck that much out of the economy and expect the economy to thrive. Well, that sort of rebounds back on miss tysons point. Let me play a sound bite from yesterday on the abc program this week from senator mcconnell. Why arent we trying to settle the problem . Why arent we trying to do something about reducing spending . We know we need to do it. When are we going to do it . We dont need to use the deadline. Miss tyson, just said taxes took money out of the economy that we cant afford. They took out of the economy. If you take more money out from spending cuts your argument is you do more damage to the economy. No, no. Look. Tax increases are spending cuts with different multipliers. Take things out of the economy now. The deal we passed is retraction nar to the government by 0. 6 percentage points. So if a gdp rate that isnt that high. Theres already a fiscal cap in place on federal spending. Theres a fiscal contraction in place right now. So the truth is from fiscal policy point of view on the current state of the economy with gdp gap of 6 , we are taking spending power out of the economy. Yes the tax deal did that. The issue about the long run is we do not want the government to be competing with the private sector for barrowing when Capital Markets are tight. Right now the federal government can borrow at less than 2 . Right now we have, for example, a 2. 3 trillion deficit in infrastructure. Why arent we investing in infrastructure right now . Why arent we borrowing to build our future . That is separate from whether we decide now on a change in the retirement age for one of our n entitlement programs. Lets answer that question. What do you think . I mean, do you think part of this is the indecision in washington that just what tom said that, you know, folks are out there saying theres too much uncertainty. Why do you think folks are not hiring yet . Whats the answer . I think its a bit of uncertainty and still the fact that if you look at median incomes in the United States, if you look at per capita Household Incomes in the United States, if you look at Household Wealth in the United States, we are nowhere back to where we were in 2007. Therefore the economy cannot generate the kind of consumption it generated in 2007. Were forgetting one other factor which is regulation. Yep. Bank regulators is one example. The Small Businesses i work with at the Highland Consumer Fund have trouble getting capital. One of the reasons is despite the rhetoric from washington, the Bank Regulators have put in so much spending restrictions so that my Small Businesses who want to add jobs cant do so because they cant get the capital. I completely agree on that. Were very focused on regulations as well. I completely agree on the Small Business Capital Market conditions. This has been a big, big problem. Its one of the reasons the recession was so deep and one of the reasons the recovery is so slow. I agree with that. But i really want to point out, why is it so difficult to get a spending deal . I think its important to recognize that the American People, the majority of American People do not agree with a change in the retirement age. The majority of American People do not agree with significant cuts to medicare and medicaid. Nobody ever wants to go on a diet. This is not president obama saying that he this is basically we all want free stuff. We all want lots of stuff. The question is can we afford it . Theres no doubt about it. Youre right. Maria, the tax deal that we just passed, the economists included in that taking adding back into medicare the 700 millions of provider cuts that were already in there. At the same time theyre essentially raising taxes, theyre walking away from a set of spending cuts that were already in there. You know, the biggest bunch of baloney about spending cuts ive heard is the notion of these medicare cuts. Every year they say they pay the doctors less. The doctors scream and congress and administration rescinds it. These are phony cuts. Weve got to deal with real cuts. And the Job Creators Alliance is trying to get people to focus on real cuts. Thats a great point, tom. Much of the cuts were talking about are cuts of projected spending. Not actual cuts in spending. We got to run. The point you want the cuts in projected spending because its spending relative to growth and gdp. I think the cuts in projected spending is correct to do. Yeah. The only issue is it just doesnt impact the 16 trillion were faced with. Thank you so much. We appreciate your time. Well see you soon. Biotech stocks among the big movers today. Over to you, seema. Hi, there. A lot of moves as the jpmorgan conference kicks off. Gilead sciences moving up. Says todays update keeps gilead in the race which he says is an 18 billion market opportunity. Ls elsewhere were seeing a bright spot in the biotech space for celgene. Also activity to keep note of, athenahealth in the mobile health care space. Epocrates added a 2 premium. Its a small cap, but that stock is moving sharply higher today. Look at illumina. Thats not whats moving the stock. Heres what is. Telling the newspaper over the weekend that illumina is definitely off the table based on those comments. There is speculation that roche may not further pursue an illumina deal. Thats whats weighing on shares of illumina today. Thank you so much. Coming up, well talk with the head of one of the biggest today. The ceo of snofi chris viehbacher. Theres a lot of flu going around. Its a bad one. Minutes before the bell, look where the dow sits now. Dow at 13,387 and change. Google executive chairman eric schmidt arrived today in north korea. Not a popular move with the white house. But google stock is popular with investors. That story and a look at google stock coming up. [ male announcer ] dont just reject convention. Drown it out. Introducing the allnew 2013 lexus ls f sport. An entirely new pursuit. This is 100,000. We asked total strangers to watch it for us. Thank you so much. I appreciate it. Ill be right back. They didnt take a dime. How much in fees does your bank take to watch your money . If your bank takes more money than a stranger, you need an ally. Ally bank. Your money needs an ally. Goog google opens up anyone with a internet connection. Now googles executive chairman eric schmidt is in north korea. Our chief International Correspondent Michelle Carusocabrera has the latest. Its not exactly clear why eric schmidt is in north korea. We do know this. As googles executive chairman, he is the most high profile Business Executive to travel there. This is video from early this morning u. S. Time almost nighttime there in north korea. Whats interesting is they land in north korea. There you see him with governor Bill Richardson who organized the trip. Says he invited eric schmidt. Google says this is a personal and private trip, has nothing to do with them. Bill richardson has been to north korea half a dozen times in the past 20 years. He invited schmidt. It has nothing to do with a Diplomatic Mission from the United States. There were reporters in north korea on the ground, they must have been condoned by the dictatorship there which is secretive and nuclear ambitious, heres how they responded to the reporters who were there. No interviews. No interviews. This is a private humanitarian visit. Were here as individual american citizens looking at the humanitarian situation. Were going to ask about the american detainee whos here. Were interested in the economic and political situation. We are concerned about the missile launches and were concerned about the importance of dialogue. The state department did not want them to take this trip. Heres the statement from last week. They were not going to be accompanied by any u. S. Officials. Frankly we do not think the timing of this is particularly helpful but they are private citizens and are making their own decision. That is victoria nuland. Back to you. Thank you. Whether you think the trip to north korea is a good idea or not a good idea, is it a good idea to buy google stock here . Lets get to the technical side of the story. Carter worth is with oppenheimer. John stevenson is with first asset management. Carter, let me kick off with you. Whats the chart look like on google . It looks great. Lets look at two charts. The first is a five year chart. The 660 level and how formed that is. Then the breakout last year. Stock hit 775. And if you break out and fall back to the level from which you broke out, you have rebound potential. Again, thats exactly what google has done. Then the second chart which is equally important puts in context of the breakout of last year. That breakout to 775 allowed google to make an all time high. Able to eclipse its 2007 peak. And how many stocks in technology have done that . Not many. How many stocks in general are now making their 07 highs. This is impressive and it looks like more to come. What do you say, john . Hows the fundamentals looking . I dont see that at all. One part of the chart we havent talked about is how in the Third Quarter of last year the stock tumbled 100 a year when it missed expectations. It will again. Why . Operating margins are down from 31 to 19 . Motorola still losing money. Theyre a core desktop business. All of this is negative for google. And i would sell right now and run away before the quarter. Sell and run away, carter . You think if a chart looks good its going to continue to look good. Whats important here is large cap tech is dreadful. From microsoft, apple, ibm. This is outperforming the sector, if you will, and market having made an all time high when the s p has not been able to do that. Then most recently the markets been over a bit of pressure. And it is holding up well. We think this is quite timely and would stay the course. Well leave it there. That is what makes the market shine. Thank you very much. Ty, over to you. Right now the dow is down about 41 points. The s p is almost level up about four right now. Just a few minutes before the closing bell. You think you just have to worry about the federal government when it comes to higher taxes . No, no, no. Now some states are paving the way towards something that could become a mileage tax. Yes, a mileage tax on our driving. That is next. Get ready to get angry. And its safe to say people who can afford this car wont be too concerned about having to pay a few extra bucks in taxes. Stick around for details on a car that costs more than a million and a half dollars and you cant drive in the u. S. Yet. A bunch of americans have already preordered it. Tdd 18003452550 when im trading, im so into it, tdd 18003452550 hours can go by before i realize tdd 18003452550 that i havent even looked away from my screen. Tdd 18003452550 tdd 18003452550 that kind of focus. Tdd 18003452550 thats what i have when i trade. Tdd 18003452550 tdd 18003452550 and the streetsmart edge Trading Platform from charles schwab. Tdd 18003452550. Helps me keep an eye on whats really important to me. Tdd 18003452550 its packed with tools that help me work my strategies, tdd 18003452550 spot patterns and find opportunities more easily. Tdd 18003452550 then, when im ready. Act decisively. Tdd 18003452550 i can even access it from the cloud and trade on any computer. Tdd 18003452550 with the exact same tools, the exact same way. Tdd 18003452550 and the reality is, with schwab mobile, tdd 18003452550 i can focus on trading anyplace, anytime. Tdd 18003452550 tdd 18003452550. Until i choose to focus on something else. Tdd 18003452550 all this with no trade minimums. And only 8. 95 a trade. Tdd 18003452550 open an account with a 50,000 deposit, and get 6 months commissionfree trades. Tdd 18003452550 call 18005784439 tdd 18003452550 and a trading specialist tdd 18003452550 will help you get started today. Heres one of those unintended consequences. More fuel efficient cars are leading to a shortfall in gasoline taxes. Now some states are getting creative to make up for that lost revenue. Phil lebeau joins us in chicago with the details. Phil . Were talking about essentially a mileage tax. And what were seeing, the first state to do this essentially is is the state of washington. Starting next month it will be taxing those who own an electric vehicle 100 per year. Why electric vehicles . You cant get a gas tax from those who are charging their car at home. As a result that tax revenue is going into the state transportation fund. Why is washington doing this and other states looking at something similar . Gas tax revenues are under pressure. First the recession means people are driving less. Particularly painful for the federal government. It gets 18 cents in tax from every gallon of gas bumped in the country. On top of that, you have fewer high efficiency models. Every year we have seen the fuel efficiency increase. Its now at its alltime high for new vehicles. 23. 9 miles per gallon in december. 23. 8 for all of 2012. As a result a lot of states particularly washington, oregon, minnesota, others. Theyre studying vehicle use taxes. Minnesota and oregon by the way conducting pilot studies looking at taxes per mile driven. Bottom line is this, maria and tyler, the states have to make up for the lack of tax revenue from gasoline. Theyre going to look at other ways to tax you for how far you were driving. This is where youre going to get these vmt, vehicle miles traveled, taxes coming in. Amazing. Stay right there. We want to bring in a couple more voices on this issue. Joining us now is the president of the electric drive transportation association. Hes concerned this will in fact discourage people from buying fuel efficient cars. Dan weiss is senior fellow at the center for american progress. Hes generally conservative minded but looks at this sort of tax as a user fee to be paid by users rather than the rest of us. Good to see you, guys. What kind of dent does this make, you think, in the effort to get people to drive fuel efficient cars . Its certainly not going to help. And i think we have already agreed as a national imperative its important to use less and less petroleum. We dont want to use policies that are essentially in conflict with what has already been agreed as a policy objective. We think thats whats going to happen. You know, dan, you basically agree that Energy Efficiency is a noble goal, but you also think its okay to tax mileage on electric cars. Generally you tax things you want to do less of. So you wouldnt tax electric cars. And you would more heavily tax the things that you want to consume less. And that is carbon. Heres the thing. First were strong supporters of investments that will help increase the number of electric cars on the road. Thats a good thing. But at the same time our infrastructure is ailing. Its estimated that half of our roads need to be resurfaced or repaired. Close to 1 3 of the interstate highway system is in sub standard condition that has economic costs. Right now the gasoline tax doesnt pay for all the repairs that are needed. So weve got to raise revenue. And its better to do it from the users of the roads including electric vehicles rather than from the general public. If you live in new york city or chicago and only ride the subway all the time, why should your tax dollars go to pay for roads that you dont use . Thats why this go ahead. No, no. You go ahead. Finish your thought. I was going to say thats why putting a fee on electric cars is not a great idea, but its a user fee for people using the roads. And thats better than taking the money from generalrevenue. Theres other options as well we can look at like cutting tax breaks for big oil companies. Perhaps doing oil import fee. But we need to have some form of revenue to help repair our crumbling roads and bridges. You know, thats the issue. Everybodys looking for revenue any way they can find it. Are there better ways to raise revenues . You just mentioned the oil companies. Phil lebeau, what are you hearing . What are the better ways to face revenue . I think the states look at this and say if we already do it on toll roads and bridges and select states around the country, why not do this across the board . And thats why theyre looking at how do you implement this. The ion, maria, is its coming. As much as people dont like it, its coming. How do you monitor how many miles youre driving every year or tyler is driving. And if you do this with some type of an ez pass then people say i dont want the state knowing how far i drove. Thats exactly right. I mean, they do know if i use ez pass. They know where i am at any given time or if i went through the tolls any hour. They know where you are at all times. They know where i am. What are the privacy concerns here . And are they potentially grievous or overblown . I think phils right. Over time what were going to have to look at is a comprehensive solution. It needs to be technology neutral. And it needs to be constructed in a way its not at odds with essentially our efficiency goals. Which also become our National Security and Energy Security goals over time and are consistent with our Environmental Policies for clean air. This is where we have an opportunity here to utilize a lot of leverage. Electric vehicles which are called out at the top of the program are, i think, i think it was dan that said including electric vehicles. Were okay with that but we dont want to disadvantage a technology essentially weve worked hard to get policies in place to encourage. Its just emerging into the market place. Brian makes a good point about making technology neutral. We need to make sure to include all sources. But electric causes road wear and tear just like a same sized gas powered car. We need more electric cars to reduce our oil use and pollution, but we need to make sure people who use our roads pay for those roads. One other thing we need to look at it is the federal gasoline tax is worth about 50 less than it was when it was last raised 20 years ago. All good points. Lets just be clear, dan. Youre not going to have enough electric cars to close this gap any time soon. Thats a great point. Absolutely. Thats true too. And we need the stations to accommodate. Good to talk with you all. Thank you for having us. About 20 minutes before the closing bell sounds on wall street. Dow down about 40 points. And the nasdaq off of the lows. So far this year bond yields moving higher. So is the bond rally officially over . They blowed the whistle on it. Going to get his ideas. Then earning season kicking into gear tomorrow. How it will impact your money. Plus later my observation on the coming earning season. Well have revealing information on that. Tomorrow dont miss an interview with the ceo of alcoa. Thats right here tomorrow. 4 00 p. M. Eastern on closing bell. On gasoline. I am probably going to the gas station about once a month. Last time i was at a gas station was about. I would say. Two months ago. I very rarely put gas in my chevy volt. I go to the gas station such a small amount that i forget how to put gas in my car. [ male announcer ] and its not just these owners giving the volt high praise. Volt received the j. D. Power and associates appeal award two years in a row. [ male announcer ] where do you turn for legal matters . At legalzoom, weve created a better place to handle your legal needs. Maybe you have questions about incorporating a business youd like to start. Or questions about protecting your family with a will or living trust. And youd like to find the right attorney to help guide you along, answer any questions and offer advice. With an a rating from the Better Business bureau legalzoom helps you get personalized and affordable legal protection. In most states, a legal plan attorney is available with every personalized document to answer any questions. Get started at legalzoom. Com today. And now youre protected. But im still stubbed up. [ male announcer ] truth is, nyquil doesnt unstuff your nose. What . [ male announcer ] alkaseltzer plus liquid gels speeds relief to your worst cold symptoms plus has a decongestant for your stuffy nose. Thanks. Thats the cold truth sven gets great rewards for his Small Business how does this thing work . Oh, i like it [ garth ] svens Small Business earns 2 cash back on every purchase, every day woohoo so thats ten security gators, right . Put them on my spark card why settle for less . Testing hot tar. Great businesses deserve great rewards [ male announcer ] the spark Business Card from capital one. Choose unlimited rewards with 2 cash back or double miles on every purchase, every day whats in your wallet . Heres your invoice. Nothing. Are you stealing our Daughters School supplies and taking them to work . No, i was just looking for my stapler and my. This thing. I save money by using fedex ground and buy my own supplies. Thats a great idea. Im going to go. We got clients in today. [ male announcer ] save on ground shipping at fedex office. If you want to make money in bonds this year, our next guest says the most bullish bet may come down to one single word. Housing. Pimcos mark keisel joins us now. He was named morning Stars Bond Fund manager of 2012 just last week. Mark, good to see you. And congratulations. Bob pisani only joining us. Mark, lets talk about that. First, congrats on this terrific naming from morning star. Why housing . Whats the bond play . I think the bond play is that there are several companies in the housing sector that can benefit from really strong cash flow growth. Housing is in the beginning stages of a multiyear expansion. Were likely to see growth of 20 to 30 growth for companies. That will lead to credit upgrades for companies. There are Many Companies in housing that will benefit. You want to own them on the bond side. Mark, you had a good year. Good to see you again. Saw you last week out at morning star. Had a great year last year. Up 15 in your fund. How much more difficult is it going to be to make money in fixed income this year and beyond housing how are you going to try and do it . Good question, tyler. Nice to talk to you again. I think its going to be a lot more difficult. Were very much underweight the long yield curve. Were focused on potential for higher rates. We like energy and pipelines. Whats happening is you get this huge production in the United States. And in the shale and in the permian basin. Were focused on the firms like Markwest Energy that are processing all of this crude oil and gas. Those are the companies specifically we think will see very high growth. And similar to the housing companies, be very good for Bond Investors. How does that equate in equities, in the equities world . Great returns to 2012. Has the performance so far this year and what can you say in terms of equities versus the bond world . Lets talk about how housing is. I concur that housing is getting better. We talked about it throughout the year. Ive got two problems. Number one the stock prices are reflecting that. Most of the big Home Builders are near new highs. Even the support guys. Theyre at multiyear highs as well. The second concern i have is are Mortgage Rates getting higher . It hasnt happened yet. Were around 3. 5 on a 30year. But watch the gyrations in the bonds lately, thats got people nervous. Mark, isnt it true while home prices, stocks of Home Building companies is up, isnt Corporate Bonds as well . Prices higher here. I think you bring up a good point on the equities side. The equities have definitely shot up in 2012. 100 for a lot of those names. But this is a multiyear Earnings Growth background. So what were looking at is basically companies that are going to deliver a strong growth. I think we still have a fair amount on the upside. A tremendous amount of money has been flowing into munis and more is going to as a result of taxes going higher. Do you think they are overvalued . Or do you think they are dangerous at these prices . Well, i think you want to be more on the short end of the yield curve. When you expand out to 30year bonds, you are taking a lot of Interest Rate risk. Really the best part of the curve is the five to ten year on the curve. Individuals, taxes are going up. And i think they could go up further over the next five to ten years. Quick comment, maria. The hottest space in bond etfs last year is where mark was. Corporate bond etfs. The biggest bond etfs in the United States is the ishares Corporate Bond fund. 20 billion in assets. I know youre bigger, mark. But bottom line is thats the hot space. Youre in it, my friend. Gentlemen, thank you very much. Well keep watching. Mark keisel just broke down the muni market finish us. Now lets get the super bull on the group. Blackrocks peter hayes is with us unveiling his muni predictions. Meanwhile lets get to eamon javers who has news about ticketmaster. It seems like a significant error here on the part of ticketmaster last night is going to result in a snafu for those trying to buy tickets to the inaugural ball and parade this month. Apparently according to folks i spoke to at the president ial committee, ticketmaster accidentally sent out an email last night. It included a live link. As a result tickets that were supposed to go on sale today actually were available for purchase last night to the inaugural ball and to the parade. Those tickets have sold out and its not entirely clear that there are going to be any more Tickets Available or made available to the general public as a result of this mistake. They say theyre going to honor those tickets that were sold. They were legitimately purchased last night. All right. Eamon javers, thank you very much. Weve got about nine minutes to go before the closing bell. And the dow is a bit below water there. Down about 45 points right now. Down 1 3 of a percent as we get ready to close. Navigating the e next couple of months from the looming debt ceiling and problems in the middle east, the global watcher is with me to tell you what he thinks is the biggest risk to your money in 2012. Stay with us later on. But first notre dame and alabama set to kick it off at the National Championship game tonight. Both schools will rake in the cash. But the players wont see a dime of it. That could soon change, however. Details when we come back. Policewoman ake 70,0 trades a. Reach one customer at a time . Or help doctors turn billions of bytes of shared information. Into a fifth anniversary of remission . Whatever your business challenge, dell has the technology and services to help you solve it. I had[ designer ]eeling enough of just covering up my moderate to severe plaque psoriasis. I decided enough is enough. [ spa lady ] i started enbrel. Its clinically proven to provide clearer skin. [ rv guy ] enbrel may not work for everyone and may not clear you completely, but for many, it gets skin clearer fast, within 2 months, and keeps it clearer through 6 months. [ male announcer ] enbrel may lower your ability to fight infections. Serious, sometimes fatal events, including infections, tuberculosis, lymphoma, other cancers, nervous system and blood disorders, and allergic reactions have occurred. Before starting enbrel, your doctor should test you for tuberculosis and discuss whether youve been to a region where certain fungal infections are common. You should not start enbrel if you have an infection like the flu. Tell your doctor if youre prone to infections, have cuts or sores, have had hepatitis b, have been treated for heart failure, or if you have symptoms such as persistent fever, bruising, bleeding, or paleness. If youve had enough, ask your dermatologist about enbrel. Welcome back. Tonights National Championship between notre dame and alabama will bring in millions of dollars to both schools. The athletes on those teams, however, wont see a dime of that money. But now the head of the ncaa is supporting a new way for players to be compensated with more than just a scholarship. Thank you, maria. Weve got a lot of numbers on this game. Notre dame guaranteed 6 million tonight win or lose. And the Football Program brings in 69 million a year with a profit margin of 23 . The net is 43 million. And alabama the numbers are higher. And as always the question is whats in it for the players . Theyre the product, right . Well, some count their Free Education worth about 50,000 these days is enough. But theres an evergrowing clamor of how to compensate the athletes. The question is how. Even mark emmert the president of the ncaa is supportive. His point isnt to make it play for pay, its to update a decadesold scholarship model out of date. Most of these kids cannot even get side jobs for pocket money or do anything but go to class, practice, and travel. Proponents say the dollar figure is enough to allow them to focus on sports and school while not allowing them to live a life different than the average student. Even with that, football and basketball generate ridiculous revenue. The upcoming tv deal to televise the winner, 470 million for 12 years. Some of that at some point has to trickle down to the student athlete. Really interesting that it hasnt trickled down yet. Not so far. Its always been i think they get 50 a month or something for milk money and thats basically it. Who are you picking tonight, ty . My heart says notre dame on this. Im going on the other side. Alabama. Stay with us. [ male announcer ] staples is the numberone Office Superstore ink retailer in america. Now get 6 back in staples rewards for every ink cartridge you recycle when you spend 50 on hp ink. Staples. That was easy. How did i know . Well, i didnt really. See, i figured low testosterone would decrease my sex drive. But when i started losing energy and became moody. Thats when i had an honest conversation with my doctor. We discussed all the symptoms. Then he gave me some blood tests. Showed it was low t. Thats it. It was a number not just me. [ male announcer ] today, men with low t have androgel 1. 62 testosterone gel . The 1 prescribed topical testosterone replacement therapy, increases testosterone when used daily. Women and children should avoid contact with application sites. Discontinue androgel and call your doctor if you see unexpected signs of early puberty in a child, or signs in a woman, which may include changes in body hair or a large increase in acne, possibly due to accidental exposure. Men with Breast Cancer or who have or might have prostate cancer, and women who are or may become pregnant or are breastfeeding, should not use androgel. Serious side effects include worsening of an enlarged prostate, possible increased risk of prostate cancer, lower sperm count, swelling of ankles, feet, or body, enlarged or painful breasts, problems breathing during sleep, and blood clots in the legs. Tell your doctor about your medical conditions and medications, especially insulin, corticosteroids, or medicines to decrease blood clotting. So. What do men do when a numbers too low . Turn it up [ male announcer ] in a clinical study, over 80 of treated men had their t levels restored to normal. Talk to your doctor about all your symptoms. Get the blood tests. Change your number. Turn it up. Androgel 1. 62 . [ male announcer ] this is karen and jeremiah. They dont know it yet, but theyre gonna fall in love, get married, have a couple of kids, [ children laughing ] move to the country, and live a long, happy life together where they almost never fight about money. [ dog barks ] because right after they get married, theyll find some retirement people who are paid on salary, not commission. Theyll get straightforward guidance and be able to focus on other things, like each other, which isnt rocket science. Its just common sense. From td ameritrade