Transcripts For CNBC Closing Bell 20130924

Taking more heat than any other bank, especially whether it was one of the few that technically didnt need a bailout during the krit crisis . Theyre piling on at jpm. Why is blackberry lower today, below that 9 a share that fairfax financial is offering . Is the market concerned the deal wont go through . Yesterday dan niles told us, if you own a blackberry, take the money and run right now. But someone here thinks a better offer is coming. But is that realistic . We have both sides of this blackberry fallout just ahead here on closing bell today. And is this what the fed saw when it held tight last week . Retailers now expected to hire less this year for the holidays than they did in 2012. What is it forecast about the economy and prospects for some of these companies in the stock market . Bill . Somebody tweeted i said 91 days to christmas. Somebody sat down and did the math apparently. 92 days until christmas because october hooz 31 days. Thank you. Somebody has way too much time on their hands out there. Exactly. Or theyre doing the layaway option, which is a smart one. Good point. Very good. Lets show you what the markets have been doing so far. Today the dow is in slightly negative territory. Were told by art cashin the is down as well. This is the newly revised dow. Three went out, three came in yesterday. The nasdaq is trading higher today. Up 13plus points at 37. 78 and the s p 500 is also slightly higher for a moment with a gain of half a point at 1708. Joining us in closing bell exchange, jane from wells fargo, mike mcqueen from highsthig hightower and jeff fox, brand new finance editor, congratulations. Thank you. And rick santelli. I know you dont let the macro stories get in the way too much, but you cant really ignore what the feds doing these days, can you . No, you cant ignore it, bill. I think the hardest part is the market thought they knew what the expectation was from the fed. And now im not sure the market knows what to expect. So, what do you do . I mean, how do you make money in that kind of market climate, then . What do you tell your clients about investing . So, what we tell our clients is we focus on fundamentals within a company and look for stocks that have the opportunity to outperform kind of regardless of the macro. Obviously, more positive macro environment will help all stocks, you know, all ships with rise with a more positive overall market. But i think we can find some stories, too, that may not be as tied to what fed is doing in interest rates. Unusual and weird. These are some adjectives ive seen tossed around to describe the market today. Weve seen the tenyear lower while stocks casting for direction. What is providing the direction here . Is it the fed . Whats happening out of washington . Something else entirely . Right now its totally the headlines. Were seeing individual investors are not so concerned about the leadership change at the fed as they are this budget battle. Were seeing that start to hurt their psyche. We think it will hurt Consumer Confidence if if goes on too long. There are some bargains out there. We think specialty fashion retailers, and were looking abrootd. We think philippines and mexico are two good names in emerging world that makes sense for investors. There are places to put money. Jeff cox, decent housing data. What does the fed of that when some were talking yesterday about the possibility of maybe tapering next month . I would love to think the fed is watching this housing data and saying, this is something good happening in the economy. Maybe we can start to taper back a little bit and get out of the way of the free market. What you see though more and more is the unwining of this kind of stockholm syndrome love affair between the market and the fed. The fed no longer able, maybe, to give direction to the market. And on the other hand, the market just confused. They dont know what the feds got up its sleeve. You know, i think it just reflects what everybody has been saying. A weird market. Not a lot of direction. And, you know, well see whats going to happen now that this love affair is ending. Rick, is this market all about the fundamentals or is it completely divorced from them and off in its own world . You know, i think that the fixed income market arguably is looking at fundamentals but i think the curveball from last wednesday i dont really think its a curveball because i think you need to concentrate on dynamics of the economy. Lets be frank here. The market priced in taper. If the fed didnt make that assumption, its theyre call. Even at 265 its much higher in yield than it was at the beginning of may when it was at the 160s. Nonetheless, 5s, 10s, 30s, even the lqd are closing at sixweek exchange. Sixweek high on etf and sixweek low in terms of yield. Ann, youre talking about companies with decent fundamentals. Who are some now . We like thorateck, they make a ventricular device so Heart Patients go on these to extend life. This is a lowrisk company with 250 million on the balance sheet, producing Free Cash Flow and no debt and a product approved on the market. You threw out a couple of names earlier, mike. Dy see as well youre looking at opportunities outside of the u. S. . Are you confident in that, even if the dollar stays strong up here . I think so. You cant give up diversification because of whats going on in the dollar. Most individual investors are underexposed to the national market. We know philippines with economic reform and deep knowledge of english are attracting a lot of american corporate interest and mexicos proximity to u. S. Gives it a leg up. We know they have inherent problems but they have growth and people are looking for growth. M a will be an issue because youll look for growth. Quick reality check on the dollar. Rick, last week it tanked on the no taper right now, which is counterintuitive, but what do you think the dollar is going to do here . I think the dollar will remain under pressure. Granted, its not at its lows but hovering in a zone low since february. How can you tell . We have a 160 handle on the pound and approaching a 135 handle on the euro. If i could throw this out quickly, i was at a conference yesterday with roubini who was bullish on the dollar. He thinks the dollar goes higher in price and he believes the u. S. Economy, no crisis in sight. Yeah, nouriel is taking his dr. Doom hat off for a while. He says hes dr. Realist. He should stick with what he does best, stick with doom. Rick, are you fighting him for that title, rick . Well, no, i dont believe in doom. I just believe in being honest and real. Ill tell you, its hard for me to look at that dollar index chart and get very worked up. Rick and i are realists, right . Thats right. Appreciate all your thoughts on the market here. Were wondering if traders got access to feds no taper decision before the rest of the market. Eamon javers broke the story. He joins us with more details about the fed calling a bunch of people. Thats right. The Federal Reserve tells cnbc it is calling certain news organizations to go over the rules surrounding the Federal Reserves lockup embargo on the release of information relating to the feds no taper decision last week. The question is whether any information left that socalled lockup room. Thats where they give information to reporters ten minutes early in order for them to prepare stories ahead of time. The question is did some trading thats unusual kate the information left that lockup room. Let me show you the trading in question. These are traded in chicago. All of this has to do with the speed of light and telecommunication speed between d. C. And chicago. The blue vertical line on your screen, thats 2 p. M. Eastern. What you see is the yellow vertical line is a difference of about 7 milliseconds later in time. According to the analysis firm, information cannot travel faster between d. C. And chicago than 7 milliseconds so we shouldnt see any trade reaction between the market news between those two lines and yet we do. We see a degree of trading spiking up before that should theat theaterically be possible. Blue line is 2 p. M. Yellow line is 7 milliseconds later, which is the point information should arrive in chicago. Inside that circle you see trading skyrocketing and gold futures spiking due to feds decision, or lucky bet. But possible trading raising eyebrows and fed is calling news organizations to talk to them about procedures around lockup procedures. We dont know what news organizations are called. We have a lot of questions and not a whole lot of answers. Great reporting. We want to get more from bob pisani. One of the things people are focusing on is location. If it takes 7 milliseconds to get from d. C. To chicago, were some servers that received the information closer to sdk . Great story. Whats the possible explanation . There are three likely explanations for this. Let me run through them and tell you what i think is likely the explanation. The first explanation of what happened, and you heard what eamon just said. Number one, somebody cheated. Put up the screen here. Somebody cheated. Somebody actually got the information before it was actually supposed to be released and traded on that. Thats the first possibility. The second possibility is that theres a clock sinkizatiizan sinkizization. I talked to experts about clock sink row mization. They said thats possible but impossible. Five to seven milliseconds, thats a lot. Possible but unlikely. The final possibility, the most likely one, is that information was sent to servers outside the fed. Information was transmitted before the embargo to servers on some news servers, but not released to the public. And then released at exactly 2 00. Thats what would have explained the fact that chicago and new york seemed to have gotten the information at the same time. Most traders i talked to eamon, i want your thoughts on this that that was the most likely explanation. Thats a very good breakdown. And i think on that last one, the most likely hypothetical here. The question for the fed will be they put a lot of reporters under a lockup procedure not to release any information before 2 p. M. Was it a violation of the feds rules to transmit out of that lockup room anything at all to the outside world . If it was, then your scenario would suggest a rule break. If it wasnt, then maybe thats perfectly fine and it raises the question of why theres a lockup in the first place. Exactly. Thats the issue. The way to deal with this issue is simply to stop having em bar goes like this. Release all the information at exactly 20000 to everybody. Thats what the Labor Department wants them to do but lots of questions about what happens if wrong information goes out . What if people dont understand the concepts. That doesnt solve the problem completely. Thats the reason they hand it to news organizations first so we can read it, so we can understand it, and when we report it, were getting it right as were reporting it. Hopefully. Right. Let me make a distinction between types of news organizations. This gets deep into our own field. But news organizations reading and preparing stories for television and then data feeds that are not analyzing anything. Theyre providing zeros and ones as fast as the speed of light or as fast as they possibly can straight into Algorithmic Trading computers. That sent journalism. They are in the lockup as well and having access to that information as well. Eamon javers with the very latest as we follow this story and see what the fed will ultimately do about it. Thank you, eamon. Seven milliseconds. Just went by. You want to see it again . No, because if you blink its already happened. Craziness. Look, theres about 45 minutes left to go before the closing bell. The dow is now negative by 13 points, bill. The nasdaq is still outperformed up a third. S p up less than 1 . I dont know fitz 91 days or 9 2 days until christmas but more than 90 days. It isnt exactly cherry news. Retailers expected to hire fewer Seasonal Workers than last year. Well read between the line to find out what exactly that means for the economy and the stock market. And then did you know homeownership in the u. S. Has now fallen to an 18year low. Seems more people are content to rent. The question is whether thats a good or bad thing for the country. Someone whos had a big hand in shaping housing in the nation is here. Former representative barney frank will join us. vo you are a business pro. Maestro of project management. Baron of the buildout. You need a permit. To be this awesome. And you. Rent from national. Because only national lets you choose any car in the aisle. And go. You can even take a fullsize or above, and still pay the midsize price. aaron purrrfect. vo meeeow, business pro. Meeeow. Go national. Go like a pro. While were watching the markets toward the close, this is going on in washington on the senate floor right now. Ted cruz, the rookie the freshman senator, i should say, from texas, is on the floor right now. Essentially trying to its not a formal filibuster but he has been an architect on the bill that already passed the house that would pass the continuing resolution and defund what we know as obama care. The senate, as we all know, is not likely to pass a bill like that but it has not stopped senator cruz from continuing his efforts to try to get that done. Hes on the floor right now in a sort of quasi filibuster on the funding bill at this hour. The fiscal battle continues right now. Thats right. As we mentioned, this comes just as markets were starting to get a little lift on the prospect potentially for some agreement. It looks as though that agreement would only fund the u. S. Government. For people wondering why this is happening, new fiscal year happens october 1st so there needs to be funding in place. The resolution this is all centered on is only potentially going to keep things going until november 15th, not december 15th. Around the same time around october 24th or so is when we think well hit the debt ceiling. The market is down 4 points. The nasdaq and s p 500 higher as they try to snap a threeday losing string. Lets kick it off on the internet side of things. Facebook being helped along by reports that china might lift a ban on facebook access with free zone around shanghai. Citibank boosted the price to 50 bucks a share. Linkedin up around well call it 3. 5 . Analysts at evercore boosted their target price to 280 from 250. Theyre citing job growth in job postings and better management. On travel and leisure, its tough for carnival cruise, lower guidance on lower product pricing and ongoing political fears in the Eastern Mediterranean sea. Also on the downside, athena health, got downgraded to market perform at learing swan. Analysts citing slow growth for bookings. Well cap it off retail side of thing. See whats happening with jc jcpenney. Weve hit another rough milestone for jcp. That level is the lowest for the stock since january of 2001. Investors are concerned about the need to possibly raise cash. Those reports have been circulating for a couple of days now. Kelly, bill, lots of movers on the upside and of course on the downside. Dominic, thanks. Christmas is not just crucial to retailers, its a driver to the entire economy. With 91 or 92 days to go, depending on how you count the calendar, stores are staffing up for the holidays. The stores are indicating they will hire over 10 fewer Seasonal Workers than they did last year. Does that mean they are expecting a weaker than usual turnout from the consumer . If so, that could be, of course, bad news for the economy and retail stocks. With us paul from morningstar and jan rogers kniffin from kniffin worldwide enterprise. Someone just told us, and ill name names, courtney reagan, said retailers are hiring fewer because they feel theyre hiring smarter than they were in past years. Is that the case or is this an indication that theyre expecting fewer sales this year . Well, i wouldnt want to argue with courtney but i think theyre expecting difficult sales environment. If you look at the projections, you know, Alex Partners just came out and said they thought there would be 4 to 4. 9 increase in sales. Deloit came out at 4, 4. 5 . Shoppertrack came out at 2. 4 . Retailers are nervous. Maybe theres 91 1 3 days of shopping left but problem is 26 days between thanksgiving and christmas. Everyone is nervous about that. No one saw a good first half. Theyre concerned theyll see continuing trend to where all the business goes to houses, cars, tech, home goods. So, theres a lot of nervousness out there. They dont really want to hire. And theyre going to see 40 increases in their internet business. And theyre going to see negative increases in their stores. They dont want to put a lot of people on the floor. So, its a big problem. Paul, how important are these early projections . Because if theyre off i mean, obviously what matters for people at the end of the day is just getting hired if theres a lastminute scramble, for example . Looking at past holiday seasons, has the early tell been the right tell . Well, im looking more at the stocks and saying, hey, stocks are fairly valued, maybe even a little ahead of themselves. As your other guest mentioned with the calendar and some of the compares, theres potential for investors to be disappointed. Your question, though, is this a good tell or bad tell snl im so far mildly surprised. If we net add up walmart and target with fulltime hires and temp hires, they actually have more fulltime and better people there, so theyll need to hire less. Especially when you think about the internet. Do you agree, jan . I agree. I think retailers are also concerned. They were all getting ready for the Health Care Bill to come through in 2014. So, they were being very cautious in hiring anyway. Its hard to change those plans. My guess is that didnt help either. Sort of everything went the wrong way with hiring. I dont think well see that change because i think there they are trying to do more with less. They know theyll have more growth on the internet. So, theyre putting more theyre putting more technology in. Theyre trying to do more out of the warehouses, more out of the stores with technology and less with hands on the floor. Paul, at the same time should we be painting the sector with a broad brush or is this telling us, in fact, if target is hiring fewer people, despite the fact they say theyll meet demands in other ways, and walmart is hiring less, its a way to add them . Im saying target, if you count fulltime conversions is actually up a little bit. You know, i look again at the stocks. Nordstrom and macys still have juice to get out of samestore sales, maybe from operational improvements. Macys, they havent announced hiring numbers but theyre investing a lot in store training. Their regular people are going to be better this year if theyve trained them. Theyll get more out of what they have. Gentlemen, thank you both. Appreciate your thoughts. Lets see. What is this today . September 24th. Were done our first christmas retail story. Yeah. Were guilty of Christmas Creep as well. Our official calendar says 91 days, 8 hours, 35 minutes and 54 seconds. We know people will wait until the last minute regardless. Yes, they will. Heading toward the close. Were waiting until the last minute to tell you, 35 minutes, the dow is down fourplus points while nasdaq and s p 500 are trading higher at this point. A lot of focus on facebook as well. That stock up about 90 since it reported earniin l shares hitting another record high today but did something happen in china that means there could still be more room to rally . Well ask when we come back. As you may know, famed tech investor dan niles said right here on closing bell yesterday that blackberry investors should take the money and run when it comes to the smartphone makers 9 buyout offer from fairfax financial. Well talk to somebody who says this stock is worth a lot more than 9 a share. Why is the stock still trading below 9 . Both sides coming up on the closing bell. 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Reducing document costs by up to 30 . And processing 421 billion dollars in accounts payables each year. Helping thousands of companies simplify how work gets done. Hows that for an encore . With xerox, youre ready for real business. Welcome back. Heres a familiar pattern lately. Nasdaq is outperforming all the other major averages. Sheila breaking down some big movers in this index today. Another day in the green for the nasdaq. As you said, nasdaq composite up about 0. 4 on the day. The biggest winner, applied materials. Getting up with the m a boost after they agreed to buy tokyo electron. Yahoo is showing 4 gain on the day. People scratching their heads as to why the company had an announcement about streamlining ad platform. Technicals have been strong. Nonetheless, a very big winner on the day. On the downside, take a look at netapp and emc, after getting a downgrade from analysts at barclays. They say theyve had good runs, night catalysts going for it but perhaps its time for things to pull back. You might to want take a breather when it comes to these two names. Want to mention apple. When it comes to an lis and apple, no shortage of love lately. After the boost yesterday, we got four brokages upping their price target on apple stock. The biggest reason the nasdaq is up today, all thanks to facebook. Citigroup upgrading that stock to a buy, price target of 55 a share. Positive news out of china about facebook potentially expanding their business there. All things d roorting facebookle is launching a payment system. All of that news, very understood goode for the stock. Also the nasdaq today, since its ipo, facebook is now up over 30 . Year to date that stock is up nearly 80 . So a huge winner on the day. Really lifting the tech sector, bill. Sheila, thank you very much. Lets talk about facebook shares. As you heard, up quite a bit in the past three months. Is it too late to like shares of the social giant . Lets talk numbers on two guys who are oddly enough not facebook presented of mine. Richard ross, on the fundamental side is steve cortez. Fundamentally, nothing has changed since they came out with the ipo but the stock is off to the races suddenly. Yes. I think this is all about momentum, not about fundamentals. Ly concede i was wrong a few weeks ago, i tried to short facebook, got stopped. Im willing to flip on the other side, put on my hoodie and get bullish on facebook. The main reason, you are paying 200 times earnings for this company. Im unwilling to do that because in social media you are betting on young people where fickle tastes when it comes to social media. Young people are gravitating away from facebook. Im unwilling to pay a massive premium for a company thats loosing its cool among young people. In my house we call it foggibook because my kids have fled. Bill, you and i discussed this stock on talking numbers on july 25th with numbers up on the heels of the upside earning side. With shares up 45 since then, having all but achieved that 50 target, im now a strong seller of the stock. You want to be booking profits here. When you look at this chart, in the past we talked about that big breakaway gap from the symmetrical triangle it forminged, projecting that measured upside to 50. Now an exhaustion gap at the end of the move. A Straight Line advance. That tells me were looking at a critical technical inflexion point. You want to be taking your profits right here. Im looking for a return to ipo price, near 61 . Thats where its all going to happen. Theres a big pull back here, about 20 , 25 downside from current levels. Very skeptical on facebook technically and fundamentally. Thanks, guys. Now were taking a look at markets. Dow down about 29 points as we head into the final half hour of trade. The question is whether the nasdaq will stay positive here. Big question there. Content to rent . U. S. Homeownership, he said, has hit an 18year low. Coming up, former congressman barney frank weighs in on whether were becoming a nation of renters and whether thats good or bad for the economy. He, of course, very involved in housing policy when he was serving in congress. Thats still to come. Also jpmorgan and its Ceo Jamie Dimon under more pressure as government lawsuitpalooza is piling up. Question is why and whats the ultimate end here . Coming up next, well hear from somebody who says this is all a big witch hunt. Geoff im the kind of guy who doesnt like being sold to. The last thing i want is to feel like someone is giving me a sales pitch, especially when it comes to my investments. You want a broker you can trust. A lot of guys at the other firms seemed more focused on selling than their clients. Thats why i stopped working at my old brokerage and became a Financial Consultant with charles schwab. Avo what kind of Financial Consultant are you looking for . Talk to us today. Seasonal. Doesnt begin to describe it. Running a bike shop has its ups and downs. My cashflow can literally change with the weather. Anything that gives me some breathing room makes a big difference. The plum card from American Express gives your business flexibility. Get 1. 5 discount for paying early, or up to 60 days to pay without interest, or both each month. Im Nelson Gutierrez and im a member of the smarter money. This is what membership is. This is what membership does. Welcome back. Theres breaking news on the case involving sac capital. Kate kelly with the story. Dow jones is reporting sac, embattled hedge fund, met with federal prosecutors late last week and had an initial discussion about a possible settlement of the corporate indictment of sac on charges related to insider trading. Apparently theres a wide gap between the settlement fines one side might want and the other might agree to. According to dow jones, prosecutors were suggesting a fine of between 1. 5 billion and 2 billion. Sac reporting whatever we agree you would have to deduct the 600 million we paid to the s. E. C. For civil claims. Crosscurrents going on here. President of sac told the staff that he and steve cohen, would like to settle the outstanding charges against them, which include the corporate indictment as well as civil charge for steve cohen. They would like to do that but they thought it may have to wait until a key trial is completed. That trial is of matthew martomo, scheduled to go on trial in january. It was just moved from november. So, depending on your outlook, it could be a few months yet. Just astounds me with all the money were talking about for government regulators theyre taking from wall street, that we still have a deficit. Jpmorgan chase wrote out a check for 1 billion last week to put to rest one aspect of government investigations. But the giant bank continues to be hit with an avalanche of legal actions. Kayla tausche doing her best to keep track of all the hits. Its getting harder by the day to keep track of these. The latest shot being fired from west coast, specifically the u. S. Attorney for the Eastern District of california, had been preparing a lawsuit over allegations that jpmorgan violated federal Securities Law in its sale of mortgagebacked securities in california. But in a lastminute, lastditch effort jpmorgan and u. S. Attorneys office have reengaged in talks over a settlement. Its unclear if or when that would result in a fine or dragged out lawsuit. But a spokesperson for the Eastern District said no announcement is scheduled for today. The effort is part of attorney general eric holders coordinated effort to investigate residential mortgagebacked Securities Market and any sign of fraud there. The task force, which was announced in 2012, involve some 55 doj attorneys and 30 at other agencies. Jpmorgan was the first bank the task force targeted when new yorks a. G. Targeted them last year for the bear stearns issues. Th according to New York Times the opening salvo from the government to do so, 20 million. The bank had expected to pay into the billions to settle but jpmorgan spokesperson declined to comment on any specific talks. The price tag keeps growing by the day. Unbelievable. Its a big, big number there. Thanks very much, kayla. Lets talk about it. Does it seem jpmorgan is a target of an inordinate number of legal actions lately . Why is that . Is it justified . Two sides, andrew stiltman says its justified, and the other who says its a witch hunt is mark lefarro. Why do you think this is a witch hunt . What bothers me about these cases is frankly were not seeing enough individual corporate responsibility. Jpmorgan shareholders suffered 6. 3 billion in pain with the losses as it relates to london whale. Were now talking about something in the order of 20 billion. Without question, an unprecedented number to settle the potential charges related to the mortgage fraud. I am still asking the question, as andrew and i debated a couple weeks ago on this show, where is the corporate act of responsibility and why are shareholders why is the investing public being asked to continue to accept such, what i think is inordinate amount of pain, in addition to the trading losses . Andrew, i imagine the answer is because they did something wrong. Thats exactly it. I mean, if you take a look at activity engaged in by jpmorgan, its extremely problematic. You dont just have the london whale debacle where they paid out close to 1 billion and admitted to wrongdoing, they paid over 400 million for Energy Manipulation charges. The firm is operating under six investigations by department of justice, operating under four Enforcement Actions by regulators. This is a firm marc, marc, the question is, is that evidence that there is a specific you mean andrew . Andrew. Specific agenda to go after jpmorgan or just that they did a lot of things wrong . The regulators have no insen stif for going after just jpmorgan. It so happens theyre one of the biggest and they engaged in serious misconduct. I know what jpmorgan apologists are saying, gee, were being targeted. If jpmorgan doesnt like this, they can fight the charges, they dont have to settle. Theyre not doing that. Theyre settling because they got caught with their hand in the cookie jar and theyre being whacked and its going to continue. Doesnt this point to the convoluted Regulatory Environment we live in today where every time you turn around theres another legal action against them from another Government Entity . I mean, for petes sake, lets settle this and move on. They made a mistake. They admit they made a mistake, but theyre still paying for it because there are so many other agencies that smell blood in the water and they feel like they can go after this company. Thats a great point, bill. Part of the problem that we have now is, the s. E. C. s new policy of requiring fire ining firms t liability as we discussed on this show in the past, thats going to open flood gates to further shareholder pain. Im not advocating giving wall street a pass. Im not ignoring wrongdoing, particularly where it impacts share healeders and investing public, but make the investing public to write the tab to take the check at the end of the dinner, if you will, were talking 5, 10 million is insane. Thats the cost of doing business, right . You can both whack the firm and whack the individual people. Ive been calling for a long time for more individual actions against the people who engage in the wrongdoing, but ultimately if you make the firm itself pay, presumably, hopefully the firm will implement internal controls. Hasnt worked for jpmorgan yet but hopefully it will in the near future. Do you trike to make individuals accountable here for what happened . Why do people feel like theyre watching constantly these settlements instead of anyone actually having to, say, go to jail over this . And i think thats part of the question of whether or not theres an agenda. I dont think that theres a socalled witch hunt the regulators got together in a smokefilled room and said, were going to take down jpmorgan. What i do think is the financial crisis still lacks the evil actor. It still lacks a face. Roger rotman was not a household name, steve cohen, we can talk about that for hours. Why is that . Theres still the lack of an individual person regulators were able to say, it was that bad guy is that because there wasnt an individual person or they havent been able to make a good enough case . I think its the combination of two. I think there were a lot of individual corporate bad actors that are getting away with a situation where the shareholders again, as i keep saying, being asked to pay the price tag. When these fines get paid, who pays them . As an investor, i dont know that i signed up when i bought jpmorgan stock for 20 billion fine h. U. D. Brought. Were out of time. We will have this discussion again. I guarantee it. Thanks, guys. Appreciate it. Only about 15 minutes left to go before the closing bell. Stocks continue to lose ground. Dow is down by almost 50 points. The nasdaq is on the only major index to still be slightly positive. When we come back, chrysler as we know is returning to the Public Markets. Initial Public Offering is good news for automakers retirees. Phil lebeau will tell us why they might have 100 million reasons to be very happy coming up. [ male announcer ] staying warm and dry has never been our priority. Our priority is, was and always will be serving you, the american people. So we improved Priority Mail flat rate to give you a more reliable way to ship. Now with tracking up to eleven scans, specified delivery dates, and free insurance up to 50 all for the same low rate. [ woman ] we are the United States postal service. [ man ] we are the United States postal service. [ male announcer ] and our priority is you. Go to usps. Com® and try it today. [ male announcer ] and our priority is you. Nascar is ab. Out excitement but tracking all the action and hearing everything from our marketing partners, the media and millions of fans on social media can be a challenge. Thats why we partnered with hp to build the new nascar fan and media engagement center. Hps Technology Helps us turn millions of tweets, posts and stories into realtime Business Insights that help nascar win with our fans. Yeah. Try new alka seltzer fruit chews. They work fast on heartburn and taste awesome. These are good. Told ya im feeling better already. [ male announcer ] new alka seltzer fruits chews. Enjoy the relief welcome back. The chrysler comeback story continues with word its filing nor an initial Public Offering. But chryslers road back to the Public Markets has not been a smooth one with health care and Retiree Benefits providing detours along the way. Phil lebeau. The uaw retirees are most interested in what happens with the ipo. The vee. Before veeba trust is where the funds will come from. We dont know the size or price, but the funds will come from the veeba trust. If funds are raised for ipo, they will go to uaw trust. Keep in mind, theres a difference in valuation of chrysler. Fiat says the stake we want to buy from veba, its worth 1. 75 billion. Veba says, are you kidding us . Its worth at least 4. 27 billion. They have to come together on the difference of opinion if this ipo is going to continue. Take a look at shares of fiat and i want to chair them to general motors. The issue for fiat, it continues to lag other automakers because of issues it has as far as expanding production around the world. Finally, this is going to be very interesting for a lot of people, guys. Take a look at this. The alpha romeo 4c coming to United States. A lot of people will be saying, wait, wasnt it supposed to be here already . Now were told by sources that, yes, the 4c will be sold in the United States Second Quarter next year. Good news for those who love that. Oohlala, thanks very much. Appreciate it. Were watching stocks continue to fall as we approach ten minutes until the closing bell. Dow off 57. Its the laggard of major average of the day. Oracle chief Larry Ellisons defense was supposed to be sunk by now, but his sailing team has batened down the hatches. Its still alive in the competition, which is why mr. Ellison is not on the show today. More on that a little later. Coming up, a live report from San Francisco and an update on closing bells high speed race with Larry Ellison. Clients are always learning more to make their money do more. ann to help me plan my next move, i take scottrades free, inbranch seminars. Plus, their live webinars. I use daily market commentary to improve my strategy. And my local scottrade Office Guides my learning every step of the way. Because they know i dont trade like everybody. I trade like me. Im with scottrade. announcer scottrade. Ranked highest in Customer Loyalty for brokerage and investment companies. In a we believe outshining the competition tomorrow requires challenging your Business Inside and out today. At cognizant, we help forwardlooking Companies Run better and run different to give your customers every reason to keep looking for you. So if youre ready to see opportunities and see them through, we say lets get to work. Because the future belongs to those who challenge the present. Welcome back. We want to take a look at markets, as we said heading into the close final stretch joining with us with perspective, chris as well as dick from rmb capital management. Welcome. Hi. Chris, first to you. What do you think accounts for the action today. Whats driving markets here principally . I think the markets trying to settle out. Weve had a very good up movement here since taper not happening. And i think people are repositioning, getting into the end of the quarter. And looking for opportunities going into end of the year. Financial go ahead, bill. I was going to say, dick, you think this market is fairly valued. You think the rally is getting tired . Theres certainly a point at which we think there would be a correction. I dont think it will be substantial, but we would see that as an opportunity to put money to work. Were longterm investors and look forward to that opportunity. Health care financials under pressure here. Both showing volatility. Whats it show you . I think that, you know, people are getting a little nervous with regard to the taper not happening and what that might do on margins with financials so theyre putting back on that. I dont think Trading Volume has been very good. But going forward, banking business is goo and ipo market is very hot. My question was to you, dick. Do you think this market is losing steam or fairly valued right now . I think the market is fairly valued but i think versus all other asset classes, the place to be is in equities. I would expect were in the third phase of this bull market. Probably in to use a baseball analogy, in the sixth or seventh ining . Doesnt matter if the fed tapers . I think it only matters temporarily. I think any setback, as chris said, is an opportunity to buy Great Companies at better prices. I think we should expect to see a lot more volatily in the last phase of the market. Were seeing that today. Appreciate it. As stocks hit session lows. Well come back with closing countdown as we head toward the closing bell. After the bell as well,. Take your money and leave because this is the best thing that could have possibly happened to you. Should everyone follow famed tech investor dan niles advice and take the money and run when it comes to blackberry . Well hear from someone who says niles couldnt be more wrong when it comes to the struggling stock. The market saying something different. Shares down below that 9 mark. Buckle up tomorrow. We have an enormous show lined up with google executive eric schmidt on for the entire 4 p. M. Hour, cisco chairman john chambers. Dont miss our exclusive interviews coming up tomorrow. Has its ups and downs. Seasonal. Doesnt begin to describe it. My cashflow can literally change with the weather. Anything that gives me some breathing room makes a big difference. The plum card from American Express gives your business flexibility. Get 1. 5 discount for paying early, or up to 60 days to pay without interest, or both each month. Im Nelson Gutierrez and im a member of the smarter money. This is what membership is. This is what membership does. [ cows moo ] [ sizzling ] more rain. [ thunder rumbles ] [ male announcer ] when the world moves. Futures move first. Learn futures from experienced pros with dedicated chats and daily live webinars. And trade with papermoney to testdrive the market. All on thinkorswim. From td ameritrade. As we head toward the close and set lows for the day, the dow down about 71 point. We were just looking. They have three new components, visa, Goldman Sachs and nike. Two are accounting for roughly half the decline in the dow today, or about 32 points with visa down 1. 5 points and Goldman Sachs down 1. 2 . Terry dolan, weve given back all the gains after the feds stunning announcement last week. Now what . We feel as though the market is ending what we call its transition phase, if you will. For about the last 15 weeks we kind of traded up and down, up and down. We think thats coming to an end. I see a problem in the shortterm moving averages which makes me think the dow can trade around 15,200, but then we think we turn right back up very strongly. All right. A little shortterm weakness in the meantime. The dow finishing near the lows of the session. Stay tuned, second hour of closing bell. Barney frank talking about homeownership coming up in just a moment. Welcome back to krb. Im kelly evans in for march rhea bartiromo, who will be back in tomorrow. Shes on a regatta with Larry Ellison today. I dont know where she is. Dow closing lower for the fourth day in a row. Were finishing on the street, as we mentioned, the dow continues to show weakness, down 63 points and two of its brand new components, Goldman Sachs and visa, contributing almost half those declines. Nasdaq holding on to fractional gain. S p down about four points today at 1697