Attention, it is 72 times faster than the original ipad. 72 times. 72 times. Because of the processor. You wont be stunned to know i still have an original ipad. It works. I have mine, too. Model a ford here. Later in the program jack welch will be here in the 4 00 hour. Well ask him about apple, how they should handle carl icahn. Plus a lot more with jack welch. Stay with us on that. I bet jack has an ipad air already, by the way. Folks programming and building the obama care website knew it was not ready to go. We have the reporter who spoke with insiders. We will speak with him and try to find out why the white house still insisted on launching the site despite those internal warnings. They have to clean up a big mess right now. The Dow Jones Industrial average up at 97 points, inching back to the highs of the day which will reach about 10 a. M. This morning. 15,488, last trade of the blue chip average. Nasdaq, gains once again, moving forward. 11 points higher, to 3930. S p 500, unchartered territory once again, up 11. 75. Obviously, if we close here well continue to hit an alltime high. Bob pisani, looks like bad news is good news again for the market. A weak jobs number means the fed keeps the pedal to the metal. For a long time. Estimates now that the minimum some believe its march, some believe the fed wont begin tapering until june of next year. Take a look at markets today. Bottom line, stock market at new highs. Historic high on the s p, on the russ willing 200, on the midcap and transports at historic high. The tenyear yield collapsed at 8 30 this morning when the september jobs report came out. Were at threemonth low. Interest rate sensitive stocks like reits and Home Builders have been strong. U. S. Dollar dropped, eightmonth low. Gold spiked up, at a onemonth high. Take a look at momentum trades. Weve been talking about this all day. Netflix opened up 9 and quickly after the open proceeded to drop, dropped below the opening price the closing price, excuse me, yesterday. Volume picked up. The stock moved down rather quickly. That affected a lot of other momentum stocks. By the way, people ask me, whats a momentum stock . Its a stock that has high volume and high volatility and traded a lot in the community. Both by High Frequency as well as normal day trading types. Apple, facebook, zillow, linkedin, baidu, chinese stocks, all dropped in the middle of the day. Thats the characteristic of the market. Momentum moves in the market, up and down, within several minutes they drop quickly. Lets talk fundamentals. I want to put up coach. The worst performer in the s p 500 is coach today. They had problems on their earnings report. Put ul the full screen. I want to talk about it. On the Conference Call they talked about weak traffic in north america, soft mall traffic overall. Most importantly, large perception theyre losing market share to competitors, i mean people like michael kors or marc jacobs. That issue slamming them today. Back to you. Thanks so much. Want to bring in our panel of experts to digest Market Reaction to the jobs report. Joining us lindsey from stern a. G. , joseph from jpmorgan, todd from baylor investor and john from 24 7 wall street. What did you learn today from the jobs number, lipdc clindsey . It wasnt a disaster report but disappointing. Heading into the september fmoc meeting it was clear the fed didnt have enough to justify a change in policy. After this mornings report its Crystal Clear the fed will remain on the sideline through october and most likely november. The one Silver Lining that washington officials will continue to point to is a decline in the unemployment rate. Even here its hard to see that optimism when youre talking about down 0. 4 of 1 . It all comes down to now whats the fed going to do to try to strengthen this economy. By the way, mark tepper from Strategic Wealth partners, welcome. Were glad youre joining the confab as well. We almost have an eightbox, an octobox. We want to show you something mark faber said yesterday. Listen to his thoughts about the fed. The question is not tapering. The question is at what point will they increase the asset purchases to, say, 150, 200, 1 trillion a month. That is the question. So, todd morgan, right now they buy 85 billion. Is it possible they could raise that amount as marc faber is suggesting here . What would that do . Well, anythings possible. It shows it if they did increase it, there would be more cash for people to purchase and invest. My odds they wont increase it, based on what i see today. The old adage is you dont fight the fed. The dropping of the fiveyear to 2. 5 , to invest in assets gives them greater return. One question. Here we are at the beginning of the season, not seeing gang buster growth, not seeing much traction in revenue growth, which is indicative of market demand. Without the fed is this economy, is this market trading at expectations that really are way over the top here . I mean, what do you think, joseph . I think you have seen a Pretty Amazing rally in the equities markets this year. You have prices moving at a faster pace than earnings. As a result, you take a look at valuations. Were getting closer to fair value. I dont think that necessarily means the fed is really pushing this market along. I continue to believe, as far as tapering, its really a matter of when and not so much if. The underlying fundamentals remain in place. I think youll see the fed announce tapering some time next year. Mark tepper, what do you think . Now marc faber has put on the table his thought they should increase the amount of quantitative easing, not pull back. What do you think . I dont think thats going to happen. Regardless of the Political Uncertainty thats out there, regardless of what happens during budget negotiations, we see fiscal dragging less in 2014 which should reaccelerate the economy and get us back on track to achieve above trend gdp growth. You think congress is going to get its act together . We do. We dont think theyre that far away from a compromise. We think there actually may be positive surprise. Were you on vacation the last month . I try to tune out negative noise. They havent been able to come together on all of these big important issues, entitlement, tax reform, revenue. Why would they be able to come together in the next two months . Maria, i would like to jump in on this. Go ahead, john. For marc faber to come out saying theyre going to increase qe at this point, its ludicrous. If theyre going to do that they need to confess theyre actually buying stocks instead of buying bonds. No, no, what he said no, no, he said they could increase. They could increase purchases. Well, sure they can. Theyre willing to increase purchases but it would have to be a significant misstep in the economy. We would have to have negative we would have to have negative numbers for that to happen. I dont think so. I think even if payrolls fell under 50,000, i think the fed would be willing to step up purchases. Thats crazy. Its been still we havent been able to get a 200,000 month under our belt here in quite a while. Lindsey, is it possible at some point they would think about increasing not decreasing the quantitative easing . I think if they see significant weakness. But we would have to see a reversal in unemployment rate, nonfarm payroll drop below 50,000 but if we saw that the fed certainly could. Is it possible quantitative easing isnt working . Its certainly possible it doesnt have as much momentum in the first round but we dont have the counterfactual to argue that so the fed is putting every power in their tool belt into the market to do everything they can. One thing chairman bernanke has said is he needs fiscal policy in line with monetary policy, handing over that proverbial baton. We need washington to get on board before we can talk about above 2 growth. Well leave it there. Thanks, everybody. See you soon. Heading toward the close. The dow is strengthening a bit. Up 126 points on the open this morning at the high. Now up 102 and moving higher. The s p as we highlighted is in alltime high territory right now. A new bankrate. Com survey is finding 72 of americans is holding back, but deloit says spending will be up. Wheres the disconnect . No cheer holiday or otherwise by coach, getting hammered after reporting declining sales, especially here in the u. S. Coming up, ceo will tell us what the plans are to get his company and his stock back on track. Later, former General Electric ceo jack welch with me. Hell be my special guest at 4 p. M. For the hour to talk about obama care, roll out, the active investor as well. 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. Ive got a big date, but my sinuses are acting up. Its time for advil cold and sinus. [ male announcer ] truth is that wont relieve all your symptoms. New alka seltzer plusd relieves more sinus symptoms than any other behind the counter liquid gel. Oh what a relief it is. Wook. Some good news for consumers. Oil prices hitting their lowest level since early july. Sharon is at the nymex. Rising supplies were seeing. Look at what happened to gasoline prices, in particular. Theyre down sharply. Also keep your eye, as you mentioned, on crude oil. We did see that november crude contract. That closed between 9 8 a barrel as it expired today. December the front month contracted slightly above that 98 mark and down about 1 or so. Looking at natural gas, big increase in inventory levels due to the delayed report from department of energy on supply levels. The 12 slide weve seen in gasoline futures over the last two months and what thats meant for prices at the pump. Natural average for retail gasoline at 3. 40 a gallon. A far cry from what we saw a year ago and slid sharply in the last couple of months. Wouldnt it be lovely to spend 2. 62 as futures contract suggests there . That would be perfect. Especially right in metro new york area. That would be perfect. And then we wake up. Lower oil and gas prices would be welcome news as we head into the Holiday Season. A new study by deloitte that says shoppers will spend 421 per capita this season, up nearly 10 over last year. Thats incredible. That is. Its sort of a lonely view. Were joined by jackie per nan dez at deloitte and barbara khan, director of Wharton School retail center. Jackie, lets kick it off from you. Who are these people . Yeah. Everything were hearing, especially when ceos come on air, theyre not expecting a good Holiday Season. Certainly, the Holiday Season will not be the way it was in the 20 00s, not gang busters. When you look at skurmgz we surveyed, over 5,000 consumers, theyre more confident in the economy, more secure with their jobs. They feel they increased Consumer Spending and saving over the last year because of the financial crisis. Does it matter does it matter you took the survey before the shutdown . No. I think, i think that might help because there was a level of uncertainty. Now that uncertainty is gone. The consumer is ready to spend. Youll see an uptick in that spending because all the cloudy weather over our heads has been resolved. Whats your reaction, barbara, to this projection . I think it does matter when that survey was taken. It was taken at the end of september. It was before the shutdown. And i think the consumer was definitely spooked by what goes on in washington and the lack of compromise there. But i think the good news is that the september numbers show the consumer is getting better. They feel like the economy is getting better. Theyre feeling more confident. They would be willing to spend more, perhaps on higher ticket items, which i think is what was going on when that survey was taken. But there is caution because the Government Shutdown did get people feeling not confident and more recent numbers have shown a decline in consumer confidence. Were not trying to look a gift horse in the mouth. We would love a 10 increase in shopping this christmas, but how about this bank rate survey that showed that 72 of the people who answered to that survey said they are holding back on making purchases right now. 72 . How do you reconcile that with what youre finding . Well, the Holiday Season is a long season. It starts right now, as a matter of fact. It will go right after end much new years. Gift card number one item on the Holiday Shopping list and they have to be redeemed. That factors into holiday spend. You couple that with a number of other indicators that are out there regarding home prices, stock market, lower gas prices, food prices are holding, the planets are kind of aligned to help the consumer this Holiday Season. Things have kind of straightened out in the government and that will spur on spending by the consumers. Moderate but spending nonetheless. They are more secure than they have been. Are there areas youre hearing doing better . Were hearing about foopt wear, internet shopping. Internet shopping is number one. 1998 was the first year we asked, whether you stop on internet . This is the first year internet shopping has surpassed store shopping. Omni shoppers are huge and theyll drive the Holiday Season. Not only shopping online but shopping in stores as well. Good to see you both. Thank you for your thoughts today. Thank you. Thank you both, ladies. Were in the final stretch of trading for the day. 40 minutes before the closing bell sounds on wall street. A market up 96 points on the dow. I think liou frankfurt would take an increase . Yeah, he will. Will apples ipad help them regain their share of the tablet market . Coach trying to turn things around with struggling sales in the u. S. Lew frankfor tt is with us. [ female announcer ] youre the boss of your life. In charge of long weekends and longer retirements. Ask your financial professional how lincoln financial can help you take charge of your future. How lincoln avo sales event is you take charge of yosback. Hen drive which means its never been easier to get a new passat, awarded j. D. Powers most appealing midsize car, two years in a row. And right now you can drive one home for practically just your signature. Get zero due at signing, zero down, zero deposit, and zero first months payment on any new 2014 volkswagen. Hurry, this offer ends october 31st. For details, visit vwdealer. Com today. Ido more with less with buless energy. Hp is helping ups do just that. Soon, the worlds most intelligent servers, designed by hp, will give ups over twice the performance, using forty percent less energy. Multiply that across over a thousand locations, and theyll provide the same benefit to the environment as over 60,000 trees. Thats a trend we can all get behind. Stop us if youve heard this the s p 500 on track to end record highs. Dominic chu with the breakdown. Netflix plummeted during the day as investors took profits after the ceo said the stock might have gotten a little ahead of itself. Nokia moved higher after dan loathes llc said it acquired a stake in the country. Fedex green after jpmorgan upgraded the package deliverer to outperform with a price target of 133 bucks a share. Johnson johnson gaining ground after hepatitis c drug gaining cle positive review from fda. Finally, its coach, losing ground after reporting firstquarter revenue came in below street estimates as north american same store sales saw their biggest drop in almost five years. Back over to you. Thank you. More on coach now and if the market has this right. Were joined in an cnbc exclusive by coach chairman and ceo lew frankfort. Thank you for joining us. Tell bus the quarter, what went wrong . As expected, north american womens bag was weak. Other than we exceeded expectations. A lot of things went right as well. We talked about two different consumer surveys. One said Christmas Shopping may be up 10 based on one survey by deloitte and the other said 72 of those surveyed may hold back on purchases in the near term. You sound like youre going with that second one. Youre dealing with consumers in that second survey here. In fact, were an aberration because our category is showing robust. However in terms of overall consumer sentiment, consumers are expecting to spend somewhat less than last year. Its muted that could spend 2 to 4 less. They usually spend more than they say they will but its muted. Whats going on, then . Broadly speaking, for a little while, you had the low end doing very well and the high end doing very well, but the middle is sort of so bifurcated and you couldnt get a trend. Are we actually getting to see the luxury part of retail beginning to take a hit the way other areas have . Its a situation that varies geographically by category and concept. I can say broadly, Luxury Brands are that are offering distinctive propositions are doing extremely well here in the states. Less well in china as the consumer is looking for more moderate Luxury Brands. You mentioned this is a coach issue. I applaud you for at least acknowledging that. Michael kors is doing well, kate spade, er tory birch is ramping. This strategy you started, getting consumers to see you as a lifestyle brand, not just the bags s going to take time to ge germinate and work with consumers. Can you wait that long . It depends on the shareholder. Clearly most shareholders have a very shortterm view. Im actually going to be a buyer at these levels when we leave our quiet period. I think theres real inherent value in coach and we have things working really well for us. In china our business is up 35 . Continuing double digit comps. Mens business was up 25 last quarter. Footwear is really emerging. What occurred in the United States for the longest time, we were the Market Leader in luxury. We defined and created the category. We were late to respond to competition. And the competition is doing extremely well. What the competition has done is change the dynamics of the marketplace. Its raised the importance of the emotional quotient and having a full head to toe look. Thats what we are doing here in north america. Indeed, in markets like china, over 33 of our sales are lifestyle products. Were introducing the first lifestyle capsule, a head to toe look this month. Win of the bags you showed us earlier. You know, bill makes a good point. When you look at some of your competitors out there like a michael kors, theyre doing very well. How much of an issue is any dislocation as a result of the transition in the ceo office . I mean, this has been your vision and now youre going to be stepping down. At the end of the year. With your successor moving in. Can he continue the vision you set in place . First, victor is a seasoned coach executive. We have been partners for the last seven years. The Transformation Strategy has been built in partnership with the existing and new coach team has that has arrived. We have a deep bench. Theres no continuity. This is a multiyear issue in the making. And were responding very strongly. In addition to victor being seasoned and going through adversity, transformation is not something thats a stranger to coach. We confronted the same thing about 15 years ago when kate spade the first time around and gucci required coach to evolve from a house of leather, online leather bags, which you may remember, to a modern accessories brand. We understand what it takes. We have the strategies around product, marketing and environments. And we have the team in place. No discontinuity. I will be staying around as well as executive chair into the new year to work with victor to evolve strategies and oversee broad governance. What are you expecting from 2014 . Whats your guidance now . Were guiding based on Business Conditions today. Saying to investors is were taking the approach that from missouri and we to want show you the results. Early indication are extremely encouraging. So, were forecasting very cautiously here in the womens business in north america, but other place such as mens, china, emerging market, footwear, all growth. Always good to see you. Glad to be with you. Thank you. Maybe ill come back with victor. We would love that. Well get a foursome here. Thanks, lew. Heading toward the close, 30 minutes left in the trading session here. The dow holding onto a gain. Art cashin was just telling me the bias is to the buy side. Small, about 30 0 million to the buy side right now. 13 billion settlement for jpmorgan may not be the exception, could be the new rule, if the goth has its way. Kate kelly here to explain. Also ahead you couldnt see people for what they are. You shouldnt have to pretend to be poor or do this in order to make people like you. She is a selfdeclared spoiled brat, thats her word, who has ignited a firestorm for saying she will not pretend to be rich just so people will like her or not rich, it should have said. But does she have a point that some rich people are actually ashamed of their success . Robert frank looks into this issue thats been going viral on the internet later on the closing bell. [ male announcer ] when we built the cadillac ats from the ground up to be the worlds best sport sedan. People noticed. The cadillac ats 2013 north american car of the year. Lease this cadillac ats for around 299 per month with premium Care Maintenance included. Welcome back. The ipad air unveil aid short time ago at apples latest product event. We want to tell you what makes it better and cooler than the last edition. Josh lipton with the down low. Here at San Francisco at the apple event where they rolled out new ipads as we expected, we were waiting for information about features and price points. We got those details. Lets start with the new ipad, called the ipad air. Its thinner, lighter and running apples 64bit a47 chip meaning it can handle more chip. Ten hours of battery life starting at 499 and launches november 1st. Ipad mini getting an upgrade. Outfitted with highdefinition retina display. Means the screen will be sharper. 399 is the price. Launches in november. Wasnt all about mobile devices here today. Theres a lot of news about apps. You heard the word ilife free with the purchase of mac or ios device. Same is true for iwork and mavericks, mac operating system, thats free for user. Apple trying to strengthen and build that ecosystem. Back to you. Thank you so much, josh. Apple still dominates the tablet arena, of course, but not as much as it used to. For the first time, holding less than 50 of the tablet market share, so will shes products turn the tide around . Lets talk about it. Glenn is from Consumer Reports ben paar from dominant fund. What did you hear, any surprises, anything excite you . A couple things. The first one is that its mostly an upgrade to the ipad but i thought it was brilliant by them to make it thinner and even just changing the name, i think, will get a lot of sales pushing in the right direction. The other thing, all the suites and apps are free, especially ios for mac will be free over the next couple things. I think thats a big shot to microsoft. What was your reaction to the event, were you impressed . Overall i was impressed but with that i have to say, didnt expect any major, like, Ground Breaking changes. And i thought they made great upgrasd but Ground Breaking changes are hard to make for apple right now. The ipad is pretty well perfected for them. This things so much faster, this ipad air. Glenn, what did you hear, anything get you going . I was surprised not to see an ipad c because that seems to be the direction theyre going. Something with color to, it yeah. But i agree. I think that the changes here are largely evolutionary. And most of them were telegraphed ahead of time, unofficially telegraphed ahead of time. Theyre what you would expect to see from a product upgrade. Better screens for the mini and a thinner, more elegant, lightweight design for the larger ipad now the renamed ipad air. Actually, its interesting, the two tablets are converging. The ipad air looks more like the mini and the mini has a screen like the retina larger ipad. Everybody was hot on that retina screen there. What got my attention with the maces and operating system. Theyre going to give the operating system away now. Thats just the opposite, ben, of how it has worked in the industry overall. Im lumping in cell phones. They pretty much give away the hardware and then sell you the software almost on a subscription basis. Apples doing it the opposite. What do you think of that . I think that seems to be the future. Thats what googles been doing. Thats what other companies are doing. Apple is seeing clear its profits come from hardware sales. Its been true for years. It hurts the competition. I think its a smart move on their part. What do you think the big issue with apple is then . People are questioning the innovation, the reason the stock has come way down from the highs. To what would you attribute it . I would say the biggest problem is that theres not much more they can do to iphones and ipads to make them only revolutionary, just evolutionary from Consumer Reports. I think they have to come out with a new product line like apple tv or watch or some other device to keep adding more revenue to the bottom line. Do you agree, glenn, and do you hear of anything thats revolutionary down the road here . Well, as with most people i hear a lot of speculation about the iwatch and television. I think its important to recognize when it comes to theres plateaus you can have in terms of innovation. Also plateaus in terms of market saturation. I think the phones in america have reached that market saturation where its just a replace mentd model. The tablets, i think theres still room to grow. I think by keeping the quality up and the app ee crowe system superior to googles ecosystem, apple can continue to sell a lot of products in the thanh tablet space. This is still hugely important to them. We talk about how theyre evolutionary not revolutionary but they claim today their launch of the iphone 5s and 5c was the most successful in the companys history. Are we overdoing this revolution versus evolution thing . They sound like theyre doing fine. I would say were overdoing it a little bit. The thing about it, its still the best device on the market overall. Theres a little more parody on phones than tablets. Ipads are way better than all the other tablets. But apple always seems to be able to keep ahead and keeps on getting the sales and keeps marketing right. It might be a problem five years down the line but right now its doing the right moves and making the products better. I assume you own the stock . I dont own the stock. Why not . I i dont own a lot of Public Company stocks so i can talk about these things subjectsubjec subjectively. Would you buy it here . I think its going higher and it would be a good buy. Maybe i should reconsider buying some appling to. Thank you so much, gentlemen. Thanks, guys. Coming up, former ge ceo jack welch will give us his take how kak would take on investor carl icahn. How will jack do it . Hell stick around to talk with his protege, bob nardelli, who used to run home depot and chrysler. 20 minutes in the session here. Weve plateaued for like a third time today. The s p looks like its heading for a fourth consecutive alltime high close. After agreeing to pay out 13 billion to settle government probes, now the goth is saying thats the new template. Should other banks worry. Well take a look next. Tdd 18003452550 trading inspires your life. Tdd 18003452550 life inspires your trading. Tdd 18003452550 where others see fads. Tdd 18003452550. You see opportunities. Tdd 18003452550 at schwab, were here to help tdd 18003452550 turn inspiration into action. Tdd 18003452550 we have intuitive platforms tdd 18003452550 to help you discover whats trending. Tdd 18003452550 and seasoned market experts to help sharpen your instincts. Tdd 18003452550 so you can take charge tdd 18003452550 of your trading. I have a big meeting when we land, but i am so stuffed up, i cant rest. 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Now, you would think paying 13 billion in a settlement would cure most ills but that does not seem to be the case for jpmorgan chase. Despite the settlement hammered out friday between Ceo Jamie Dimon and the attorney general, now comes word more mortgage headaches may be on the way for the bank. A key Sticking Point in the talks between dimon and attorney general holder is jpmorgans desire for a nonprosecution agreement. Thats of course a promise from the government it wont Face Criminal Charges down the road. But thanks partly to an intrepid prosecutor in california, the Justice Department hasnt been able to make that promise. Again gentleman minimum wagner is sitting on evidence of wrongdoing in the packaging of prefinancial crisis mortgages from around the country that could potentially have criminal implications for jpmorgan, from what im told. Its wagners portion of this case that convinced the attorney general to take a tough line with dimon leading to the demand of 13 million. The securities were packaged by jpmorgan itself rather than by bear stearns or washington mutual. The banks it acquired in 2008, partly at the behest of the government. As u. S. Attorney wagner has cracked down on Illegal Drugs and child pornography in california and even handled a couple of major bank heists but also had experience with mortgage fraud cases which could explain his prominent role in this case. Perhaps why hell be the wild card in this investigation. Even if we see the expected settlement deal in the next few days for this 13 billion, if there are criminal implications, it will probably boil down to wagner. Thanks for that. 15 minutes to the close for the day. A Market Holding up. Up 83 points on the dow. Well, were going to get to the obama care web snafus. What did they know . When did they know it was going bad . Reports out today say the government was told about some huge red flags. But pushed ahead, driving some of the work on the project to tears. We have that coming up later. Tomorrow follow our power pitch tournament of champions, gives startedup founders 30 seconds to pitch their new idea. Coverage begins during squawk on the street and well crown a champion right here on closing bell. Ten minutes left in the trading session. S p on track to close at new record high for the fourth straight day. Joining us to talk about it all, liz ann saunders, Vice President at charles schwab. How are you . Hi. We only created 148,000 jobs last month, the government shut down for two weeks and the fed tapering is still hanging over this economy right now. I think one of the yi misperceptions between the economy and the economy is the market should only be going up if the economy is booming. Actually the stronger the growth the worse the market performs because of the imimimplications for inflation. Its accompanied by low inflation and the market is not trading at a multiple premium and we grind higher and keep the wall of worry intact, thats not bad for the market. Isnt it also worth looking at slower economys impact on earnings, looking at earnings coming out for the Third Quarter and no great shakes. Revenue really not there. Growth and revenue, that is. So, okay, i understand your point on monetary policy, but what about the monday fejfundamz ann. What about growth . Growth is likely to pick up a little into 2014. Youre about a point and a half multiple discount. Whats different this year compared to the first three years of the bull market, the first three years e grew faster than p. Now weve had valuation expansion because the with the f has been growing faster than the e. If you look back at history in peaks in margin and top growth, if they explode throughout peak, go through a process of reversion to the mean, unless its an implosion, the market continues to do fairly well if conditions are in place for valuation expansion. I. E. , low inflation being one of the primary drivers of that. I think valuation expansion conditions are still in support of a market that could go a bit higher here. I get it. I know, the market anticipates. Thats what its doing, anticipates better days ahead. If thats the case, are you buying this market right now . If so, what are you buying . We did get a little cautious in august headed into inevitably the fiscal fight in washington. Now that weve come out of it, were a little less cautious. We really kicked the can, so Budget Committee coming out middecember. What comes out of that could be extremely positive for the market if it shows were on the first path to entitlement reform and possibly even tax reform. If we dont get that, i think the market will chop around into the january and february Government Shutdown and potential debt ceiling fights. I think we still have that cloud of policy hanging over us. What is not going to happen this time is were not going to get massive fiscal drag out of this deal, which we did coming out of 2011. The drag on the economy is going to be a little bit less and probably means a slightly brighter economic outlook. We still like the more cyclical areas of the market. Technology, industrials and Consumer Discretionary would be three. Nice to talk with you. Coming back with the closing countdown, the bias is to the upside. The dow is up 79 right now. After the bell, stick around for my special cohost jack welch. You wont believe what he has to say about the huge jpmorgan settlement and obama care rollout mess. Next hour of closing bell. You think about risk. I dont like the ups and downs of the market, but i cant just sit on my cash. 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But then, one day, he noticed that everybody could have a magic seashell. [ indistinct talking ] [ male announcer ] right there in their Trading Platform. [ indistinct talking continues ] [ male announcer ] so the magic shell went back to being a. Shell. Get live squawks right in your Trading Platform with think or swim from td ameritrade. Heading toward the close. Something very weird happened. I want to show you this. We had the rally this morning when the jobs number came out lower than expected. Which everybody took to be a good thing because it means the fed is less likely to start tapering at any time soon. The dow was up 126 points just like that this morning. At 10 30, some kind of Computer Program kicked in and took out the high fliers, especially technology stock. The nasdaq fell, and the rest of the market fell as well. Weve been recovering since that time. The s p will finish with fourth consecutive alltime high. Netflix is one of the stocks they took out and an analyst put sell on netflix based on valuations. He thought it got ahead of itself. That stock down 8. 6 . That has been the best performing s p 500 stock so far this year. When the jobs number came out, they headed for the safe havens today at the same time. So, the tenyear yield dropped precipitously. Were down to 2. 51 . You see that drop as they bought bonds and brought the yield down. They also bought gold today, so the price of gold was up 30 right at its peak. Were finishing up 24 or 1. 84 . Kind of an interesting day. What was that sell program all about, do you have any idea . Terry dolan, by the way. Hi, guys. You know, i just think it was one of those things where a program felt the market was a little overextended. Certainly didnt look like a programprogram. They dook out momentum stocks. They did. Like the netflix and some of the others as well, apple. They did. They basically put a techa temp the market as well. We have extended movement right now. The relative strength is starting to weaken, so it could have been simply on those terms. I dont think it was a mistake and i dont think it was programdriven to buy back futures in the cash market. Jobs report, 148,000 jobs created last month. Less than expected. But the market rallied. I guess bad news is good news again. I think it was expected to be around 150. I heard 18 0. Top range i heard was 160. So, i was expecting 160 as being a weak number. 148 turned out to be a little under expectations, as youre saying, so here we are. The point if something as important as job growth is still anemic at this point, does that mean the fed is less likely to be tapering sooner rather than later and is that good for the stock market . I think the psychology of the market said that but i dont believe that. Were looking at one number and the fed is looking at a trend over a period of time. That decision to taper wont be on one number. Its always on the pattern and how inflationary expectations look and how unemployment is starting to look over a trend line, not over one number. I know you traders like the s p over the dow. S p, fourth consecutive alltime high here. Are you going to buy it . We think the market is due for a pause. Not turn down negatively, but pause or turn side ways will help the market pick up more momentum for the long term. Thank you. An interesting day. Jobs number delayed two weeks because of the Government Shutdown, sent the stock market higher and s p an another alltime high. Stay tuned. Jack welch is maria hourlong guest host on the second hour of the closing bell. The closing bell. Ill see you tomorrow. It is 4 00 on wall street. Do you know where your money is . Hi, everybody, welcome back to the closing bell. Im Maria Bartiromo on the floor of the new york stock exchange. The s p went to another alltime closing high. Take a look at how were finishing on wall street. Even though we lost altitude going into the close, the market ended with double digits for the dow, up 76 points. Thats about one half of 1 at 15,467. Nasdaq picking up 9. 5 points and