Transcripts For CNBC Closing Bell 20131202

Of its own. We have a lot of stories to get to this cyber money. Have you bought something online today . Fess up. There was a browser open to lord taylor open when i got back. Just happened to be. It wasnt me. Someone upstairs was looking around. They were among the other 3100 people expected to buy something online today. Were tracking real time cyber monday numbers from ibm. Well look at Retail Stocks that could be the biggest winners from this Holiday Season. Thats right. Amazon, speaking of which, is channelling the ghost of christmas future as ceo sees drones delivering presents. How would he ever get government approval to use air space in this way . Some d. C. Insiders say he might have an ace up his sleeve. Its fascinating. You missed that report last night, but that is the jetsons coming for real here. To watch these drones. My question is, if i buy a drone from amazon does it deliver itself . That would be a drone delivering a drone. Like a 3d printer that prints in 3d. A nationwide strike has been called for this thursday, demanding minimum wage of 15 an hour. Well be talking with one mcdonalds worker planning to go on that picket line. He currently makes less than half that amount at the mcdonalds he works at. 7 . 25 is the federal wage. Thats what hes earning. Its a doubling. Dow down 40 points. Record highs set on wednesday. The s p a little bit firmer. Just turning negative. The nasdaq pointed down by five point. 4,054 is the loechl right now. Bias to the downside maybe by 600, 800 million. Lets talk about this in our closing bell exchange. Renee norris from urban wealth management, dick from rnb capital management, steve rosen from highto youer and our own Rick Santelli joining us as well. Renee, you say why not take profits here if you have a high flyer in your portfolio, right . Absolutely. Absolutely, bill. At this point as we head into 20 14, that will keep people on target to be buying low, selling high. At the same time i want to put up on the screen if we can, Something Bank of america made a point about earlier today. Its that bearishness on wall street, on the sell side, which is typically seen as the most bullish out there. Its at its highest level since march 2009. Really . In other words, wall street a lot of Asset Managers are still underweighting equities relative to what they used to over the past decade. I get the sense, looking through your notes, are you on the same page. Saying youre not getting into the market. If anything, youll pare back exposure into 2014. Is that right . We do. We think we had an excellent run. We are constructive on equities, but at high towerbethesda, we feel we can take money off the equity table right now. You can keep yourself exposed by using long short mutual funds or hedge funds, give yourself the ability to reduce volatility but still put yourself in position to get some good upside should the markets continue higher. I see a trend here with our guests today. Dick, you say 10 correction. That would be welcome because you would use it as an opportunity to buy, right . I would agree i wouldnt want to be overinvested in u. S. Equities right now but our outlook is positive for the u. S. Equity markets. We think before this market peaks youll see valuations up 15 to 20 from where they are today. We also expect well get the benefit of Earnings Growth maybe better than expected Earnings Growth in 2014 and 15. Lastly, rather than move money out of equities we would simply shift more of our equity allocation to things like Japanese Equities and small cap europe. We think equities are trading at below normal valuations on way below normal earnings. Theres a lot of leverage there for people to shift into europe and japan. What are you doing with regard to the u. S. Market at these levels . The only change in our u. S. Market outlook is we wouldnt want to be overexposed to u. S. We can its equities into developed international, but we wouldnt want to move that money into Something Like bonds or cash where we expect in the case of fixed income, the bond market is likely to produce negative returns in 2014. That environment for fixed income market could last a long time. Do you sense the market getting ready for the fed meeting later this month . Maybe taper talk at that point . Much of the same weve gotten in the past few months . Whats going on with the market there . With a lame duck fed chairman, i dont think theres a chance, not even a remote chance, this meeting coming up in december is going to show us anything we dont already know or make more clear what is impossible to make clear and that, of course, is when janet yellen takes the reins and when she will rein in programs. If you wanted to participate in three or sixmonth bill auction, heres what you saw on the website of treasury direct. Basically gone fishing. Traders say whatever the glitch was, hats off to them for not just rolling the dice and seeing if it went okay. We know that other parts of the government seem to have that tactic. As far as Interest Rates what go on. What is it with government websites . Its unbelievable. Im so glad were not listening to potentially drones delivering the mail because i can only imagine how well that would work out. I do see a 280 yield on the tens. We havent had one since the 209 of november. If you open the chart up a bit, it certainly looks like it will be in the cards thursday or friday. When it comes to foreign currency, no currency is more unloved than the japanese yen. If youre cautious on u. S. He can he witequities, im sure you have a lot of clients shaking their heads saying how do i see the returns ive seen for 2013 next year . Theres actually a few places, kelly. I think here in the United States we still have i believe were in the middle inning of this bull market. Weve had a lot of excesses to work off for that tenyear period of time between 2000 and 2009. For the first four years people were wondering, is this real . Now that weve got confirmation, there are areas were looking at. I think health care is a great place to be. Financial, regionals big Asset Managers, Investment Banking group. Weve had a bumper crop of ipos this year. A lot of Companies Issuing bonds at record low Interest Rates. We also have tremendous amount in the Energy Sector as well. There are still pockets in this market. Outside the u. S. I would definitely be looking at in the fixed income arena emerging market debt that is dollar denominated. You can get returns of 6 or 7 . And good yields there. Internationally, european market, and looking back at equities, i would be looking at latin america and mexico in particular. Steven rose, whats your thought on the fed . Would you keep going with this market as long as the fed keeps pumping 85 million janet yellen doesnt take the reins her first meeting isnt until march. If we believe the fed wont do anything until she takes the chairmanship of the fed, are we clear in this market until march, do you think . I think were somewhat clear but theres risk on the table. Every single time we have a significant discussion about tapering, we see the market sell off. Were at alltime highs. I dont think theres anything wrong with investors taking money off the table as long as you can find places to put it in. Thats why were big fans of taking profits in equities, Long Short Hedge Fund route. On the fixed income side weve pared back as rick said whether its 3 , 4 4. 5 at the end of next year we know its going higher. Were trying to find ways to manage money manage rivengs recognizing where weve been and where we are right now. Dick, just in a word because weve got to go, but there are people looking at the fact that the multiple on the s p 500 has gone from 13 to 15 over the last couple of years. Were hearing bubble talk. You say dismiss it at these levels but what multiple would you say, yes, markets are too frothy . Almost every bull market since world war ii has peaked at premium valuations. Those valuations on forward earnings have been 20 plus. So, there is there is significant room left for this market to move up. I dont dispute the idea that were going to have corrections. And i think more frequently. And sharper corrections but great buying opportunities. Thanks. Appreciate it. Have a good one. We have about 50 minutes to go to the closing bell. The dow is off 44 points. Again, its going to be a tough climb to reclaim those highs we saw last wednesday. We need an 11point gain on the high to be an alltime high. Theres been some disapointment in some circles about this past weekends sales figure. More people shopped but spent less money. How are Retail Stocks . Are there any better buys . Online shoppers taking a bite out of sales at brick and mortar establishments. Will this force more retailers to abandon those stores and go online only route . It sounds like something from an episode of the jetsons. Weve gone to the black and white version. Amazon wants to deliver packages by drone, maybe in four or five years. But will regulations end up grounding in revolutionary idea or is there a plan for that as well . Thats coming up on the closing bell. Hi honey, did you get the toaster cozy . Yep. Got all the cozies. [ grandma ] with new fedex one rate, i could fill a box and ship it for one flat rate. So i knit until it was full. Youd be crazy not to. Is that nana . [ male announcer ] fedex one rate. Simple, flat rate shipping th the reliability of fedex. Back over to you back over to you guys . Dom thanks very much. Which are shaping up to be the best retail winners and which are the losers this Holiday Season . Joining us camilla and ross gerber. Thank you for joining us. We were at the mall on friday, a mall. Anecdotally we noticed certain stores were doing a lot better than others here. Who do you think were the winners on what the numbers we got more shoppers but they spent less than they did last year. Who were the winners here, do you think . Interestingly, we i think the winners were the ones with the stronger brands that promoted less. It was fraught from promotion from store to store. It was Companies Like lulu michael kors, deckers who carries the ugg brand. They were the winners and they promoted a lot less than the other mall and retailers. My heckles are going up. Let me disentangle this. So theres a difference between those retailers that are Strong Enough they dont have to discount and the names youre citing along with, by the way we saw Tiffany Hermes the luxury guys. They did nothing. The ones from the middle market were the ones that werent quite aggressive. A clear winner seemed to be gap brands, with the 40 , 50 signs out front. Isnt it fair to separate these two themes . Well, you know, thats another astute point. We noticed that as well. What it ultimately comes down to, who was able to preserve gross margin the best. Lulu doesnt traditionally held back black friday sales but they this year smartly held back inventory that would be on the floor, to put it on the floor to give customers to come in and peruse the discount racks. My take was, they had more people shopping, 141 million, the number from the National Retail federation but they spent less because of all the discounting. Ross, what about you . I dont agree with this assessment at all here. The truth of the matter s people go to the mall now and they dont necessarily buy things when they go. They go home and buy it online. Certainly my wife loves going to the mall but the bottom line s shes online right now probably buying all the stuff she saw that she liked. So i dont think, per se, people are spending less. Theyre just spending less actually physically buying things. Quite frankly, i hate the mall, but ive gone online and ive shopped. I think when you really look at consumer behavior, if you look at a store like the apple store, we go in, touch things, see things ross what do you disagree with . What is it that he just laid out, in other words, you should stick with people who dont have to discount, who arent going to be under the gross margin pressure, which part are you quibbling with . First of all, everybody likes a discount a sale. Even if its the perception of the sale. You cant go into the black friday weekend and not have a sale. Thats the dumbest thing ive ever heard. Which is what is exactly why lulu had something on sale. But its how they managed but is lulu doing so great . I dont think theyre doing so great right now. I think they have a lot of competition. I think nike is doing well. You like a nik y ross . Who else do you like here and why . Well i like nike and i like gamestop. Bottom line, video games is what most people want. Truth of the matter, what you buy is mostly for kids anyway. We buy for ourselves but most adults we like clothes and simpler things to buy. Kids, they want video games right now. The new xbox is phenomenal, the new games are amazing. You cant get an xbox which is why ebay was upgraded because theyre making a ton of xbox and playstation 4 yeah. Its a great opportunity. Let mow throw one in from left field. Which store had the longest lines that we saw at the mall on friday . Who did we see . I know the answer. Camillo, i wonder if you have a theory. It was out the door. This store had lines out the door at the mall on friday. Any guess . I heard old navy. It was starbucks. Yeah, another good pick. Right . Totally. Everybody went there whether theyre buying something or going home to buy online. Everybody gets their cup of coffee. They have a lot of good gifts, too. Starbucks expanded retail nicely. Its a great buy and great gift to buy, too. To go back to some of the retailers at least in terms of traffic and getting people through the door gap brands was successful if you look at their banana, old navy im not sure about that one, but what do you recommend aside from the lulus of the world who didnt have to go that route at all do you like any other mass market names . The names were focusing in are the names in the athletic space. The athletic manufacturers, like underarmor and nike, have been innovating at a pace thats been unmatched by the gaps, the chicos abercrombies, the teen space. Thats something they cant compete with and resulted in share loss. Consequently, thats why they have to discount at 50 off the entire day. They need to entice the consumer to go into their stores and buy what theyre selling. Thats why under armour hadnt. We like the theme were promoting. Good to see you. Appreciate your thoughts. Ross, say hi to your wife for us when she i got to get her off line. Headed to the close. Dow down 4 2 points. The bias is definitely the downside. Art cashin keeps coming by to tell us how much stock is for sale right now. Its about 600 million, 400 million worth right now. Remember that sharp selloff into the close on friday. People dismissed it but a little more selling pressure today. Delivery in 30 minutes . You know what occurs to me pizzas weigh less than five pounds. Thats perfect. Maybe dominos will get in on the action first. Were talking about amazon delivering packages, yes, by drones. Thats coming up. I love that part of the story. Later, find out why history says, if you have any cash right now, it might not be a bad idea to bet on a big yearend santa claus rally. Thats still to come on closing bell. [ tires screech ] [ male announcer ] 1. 21 gigawatts. Today, thats easy. Ge is revolutionizing power. Supercharging turbines with advanced hardware and innovative software. Using data predictively to help power entire cities. So the turbines of today. Will power us all. Into the future. Were aig. And were here. To help secure retirements and protect financial futures. To help communities recover and rebuild. For Companies Going from garage to global. On the ground, in the air, even into space. We repaid every dollar america lent us. And gave america back a profit. Were here to keep our promises. To help you realize a better tomorrow. From the families of aig happy holidays. It has been all the buzz today. It has been all the buzz today. Amazon founder jeff baesz saying amazon is developing a drone Delivery System. Email faa is in charge of writing rules and regulation to turn that sign fiction vision into practical reality here in the United States. Theres a lot of hurdles here to overcome in terms of meshing auto ton autonomous delivery helicopters. Heres what the faa has said. Unmanned aircraft System Integration must be accomplished without reducing existing capacity decreasing safety impacting current operators or placing other air space users or persons and property on the ground at increased risk. They say they see a much broader range than just delivering packages or pizzas. Faa is considering security applications Disaster Response applications news and sport event coverage. I would love to get into on that for cnbc, if we could get a drone of our own in the air. Cargo transport, monitoring infrastructure, ports, pipelines, commercial photography, mapping and advertising. I talked to a couple of experts in this field and they say amazon might want to go to the u. S. Marine corps for advice how to do this because the marines are operating a robotic system in afghanistan called the kmax. It has the capability of delivering 5,000 pounds of equipment to marines in the field. Theyre using it. Theyve had a lot of crashes but they have experience using this in the reeld world in the way amazon is hoping to do it. Most surprising is the fact this technology really is already here. I just love this. Its here. And the marines are using it. Theyll have some advice for amazon on how to use it the weak spots, the danger points. They might have data already on the crashes. Thats going to be so key to this, is safety, making sure they dont fall out of the sky or hit other aircraft or other drones. Imagine fedex drones crashing into amazon drones trying to get packages to us. Stay with us, if you will. We want to bring in james white, d. C. Insiders with perspective on how this may be playing inside the beltway. If jeff bezos can leverage his pull in washington. I dont think hell run prodrone advertisement. Whether that comes to play in the debate, not over the safety of the drones but private issues. Ed markey has a bill dealing with the prooicy of these drones. If theyre flying to your house to deliver a pizza can they look inside and see what car you like . What information retailers or am sdmron would like does the Washington Post cover that as strongly with bezos . The other question is not just running editorials or opeds, you have power with politicians, they want to be on your good side. What extent do those privacy issues get covered the same way. Its also cia contracts. A range of issues dealing with amazon, privacy and drones that washington has a big role in. Jimmy, this is not an endorsement of amazon. I dont own shares or anything like that. But i think jeff bezos is the smartest guy on the planet. Hes the new steve jobs right now. Do you think hell run afoul of the federal government if he tries to get some regulation changes to allow this amazing drone Delivery System hes got in his head . Influence congress and influence faa. That is tremendous consumer enthusiasm and demand for this technology. To the extent the Washington Post can be a part that would help. But he should have bought io9 and boing boing. To get people hyped up. That will change it. Or politico. I knew ben would say that. To go to the question, this is almost less about amazon than the question of drone usage generally, which it sounds like could be just around the corner if regulation doesnt get in the way. Ben, to what extent is there going to be pushback from d. C. . What kind of skut anycrutiny can we expect in the next few years . As eamon mentioned, the faa is drowning these rules up gets them done around 2015. Doesnt sound like theyll stay in the way. Sounds like theyre prodrone. First indications is that they would not block it. Youll get lobbying from privacy types and in the era of nsa domestic surveillance youre so dismisses ive of privacy types. These are huge concerns. No, im not. Just because i say type he wants his pizza at his door step. He doesnt care if they look in the window when they come . I dont want them necessarily looking in my window or license plate on my car. I think that will be increasing over the next couple of years. I think right now youre seeing a has a fair approach. Eamon, im curious, how did the Washington Post treat the 60 minutes interview jeff bezos gave last night . Above the fold . Was at any time above the fold on page a6, and covered it online. They had some blog posts. When youre covering your own corporate or individual parent, thats tricky for a Media Organization as it was by anybody owned by a large corporation. I would say the faa in this case is probably going to start small, even with this enormous push by amazon. Experts a theyre likely to start with the smallest possible drones, smallest size, and work their way up gradually. They might hit regulations in 2015 or 56 16 gradual release process. I would guess the technology will be auto ton mouse cars. Its coming. Drones are coming. Airplanes are coming. I want to know how to opt out. I think a lot of people will be asking about that. I want a football drone to cover the redskins games for me so i dont have to go and witness that terrible its all coming, too, reporters, anchors. Get a hot dog. Take that knee brace off rg3 and hell be fine. From your lips to gods ears. Thank you guys. I cannot wait for all this to come. All this technology. That way you can do a lot more online shopping. Kid in a candy st the dow is down 80 points. 16,007. Just barely hanging on. The s p 500 nasdaq losing steam as well, down 5 and 15 points respectively respectively. Pulling back from record highs. American millionaires are losing confidence in this market. Well explain why and where they are putting their money right now. Now, they wouldnt be so nervous if they were listening to our next guest who says santa claus is coming to wall street and is going to deliver big returns to close out the year. Yes, plenty more on the santa claus rally, which were not seeing today anyway. And this will be your premium right here. Sorry to interrupt i just want to say i combined home and auto with state farm, saved 760 bucks. Love this guy. Okay, does it bother anybody else that the mime is talking . Frrreeeeaky [ male announcer ] bundle home and auto and you could save 760 bucks. Alright, mama, lets get going. [ yawns ] naptime is calling my name. [ male announcer ] get to a better state. State farm. Markets heading south. The dow down 77 points. The bias has been to the downside in the last hour or so. Art cashin telling us a lot of stock for sale as we get near the close. Were pulling back from alltime highs last week as we start the month of december. Which is traditionally the best month for the dow. First were learning more information now on just how far Bernie Madoff and his associates went to hide their fraud. Scott cohn is covering the latest trial in this. He has incredible details for us. Reporter if youre going to false fi documents, have you to make sure they look authentic. The scam of the century collapsed in late 2008, almost five years ago. He is talking for the first time about his experience in the trial of five former madoff employees. Hes been talking about the lengths, as you said they would go to to hide the fraud. Back in the late 1980s, kpmg the Accounting Firm was doing an audit on behalf of hsbc who had money with madoff. They wanted trade reports. You know most of the trades in the madoff operation were falsified. They didnt happen. They had to go up with something very quickly. A trade report for one specific day the auditor wanted and one days trade report stood about three feet tall, de pass kelley said. He gets them to false fi the report and he finds them throwing it around like a medicine ball. What are you doing . Hes told, well, they need to make it look used. And if theyre going to use it, they say they need to make sure it doesnt seem like its hot off the printer, so they actually took this threefoot tall trade report, put it in the refrigerator and his office before they turned it over to auditors because Bernie Madoff didnt want anyone to know the trades were fictitious or his client list because then it would add up it was a fraud. Hes the star witness in the form former madoff employees. Its expected to go on for months and dipaskali will be on the stand most of the month. Sound like a snl skit. Try this on for size both of our next guests say stocks are going to have a strong finish this year. You just need to believe in santa claus, at least the santa claus rally. What happens after that, you ask . Joining us now, jeff hersh as well as gary goldberg. Welcome to you both. Jeff, i think a lot of people talk about the santa claus rally as something in the run up to christmas. You say it really happens in the days after. Yeah. Its something we discovered back in 72. Its the last five trading days of the year averages 17 on the s p 500. Friend did a study in the the journal back to 1986 better than any other seven day period of the year. Eeb with the gains weve seen in the last 12 months, does that skew the possibility of this seasonal trend to happen this year . Not necessarily. These gains have been quite seasonally, you know, expected as well. First half of december tends to be weak. I think after a couple weeks of softness here, we can get a santa claus rally get a small cap effect, a january effect. The important part other than the nice little gain can you get out of a santa claus rally is a phrase yale my father came up with if santa claus should fail to call, bears use it to create a wall. Interesting. Oliver, this comes after this year, however the first trading da of month goes, so goes the rest of the month. We see how the markets are down sharply. Are we to read too much into it . No. You want to be cautious and selective. I wouldnt be buying the s p 500 or the dow, you know outright. I would be very selective. You guys have done some great reporting in the last few weeks about some tech names, some online names that have done very well over the weekend. We got some pretty good retail numbers. The fundamentals speak to a pretty good december right now, including all the technical components that jeffrey just talked about. The bottom line is this Monetary Policy is going to continue to be easy. Earnings are going to continue to grow at a reasonable pace. And absence of inflation. Money will continue to pour into stocks. And i think youre going to see a pretty good december. Just today Robert Schiller up at notre dame, who won the noble prize for calling the financial debacle, now hes calling it a bubble in equities. Hes probably right. Dont see the bubble popping until some time in midyear, after the election after mud slinging starts and fed chairman shift. For the next couple of months, next few months q4 q1, great combination and juice by the feds quantitative easing. I think we rally up march april, may. Just to quote from adam parker at morgan whos putting together his forecast says Something Like 6 to 8 earnings appreciation, maybe add 8 3 and a little multiple expansion. That doesnt sound terribly bubbly. I dont think were in a bubble in the sense were anything like the real estate bubble. I think youre probably somewhere around fairly valued for stocks across the board right now. The question is are earnings going to expand enough and youre going to get a little multiple expansion you talked about to drive stocks higher . We think another double digit gain in 2014 is possible but there will be more volatility. It wont be linear like weve seen over the last couple of years. Bubbles happen but trading sideways gets rid of that bubble effect as well. Its not just a question that has to blow up on you. These bubbles tend to expand a lot further and longer than anyone expects. I dont expect the kind of gains that oliver has, you know mentioned for 2014. I think were ripe for a bit of a pullback. Not the greatest down leg but i think with Midterm Election we can find ourselves somewhere down 10 , 20 , somewhere from the highs in 2014. Good to see you guys. Thank you for your thoughts today. Thank you. Appreciate it. We are heading lower. Dow was down 85 points a moment ago. That selling pressure that art cashin was identifying is very much in place here as we head toward the close with the dow just holding above 16,000. Second trading day in a row as weve seen this pattern in the close. Coming up, millionaires are feeling confident again but not necessarily in the stock market. Well tell you where their money is going. The answer may surprise you. Thats straight ahead. After the bell blockbuster was the biggest casualty of the digital revolution. But it could snow ball and get much bigger. Well look at the future of retail and what other Companies May be forced to lose their store fronts. [ engine revs ] [ male announcer ] the mercedesbenz winter event is back, with the perfect vehicle thats just right for you, no matter which list youre on. [ santa ] ho ho, ho, ho [ male announcer ] get the allnew 2014 cla250 starting at just 29,900. So i c an reach ally bank 24 7, but there are no branches . 24 7. Im sorry, im just really reluctant to try new things. Really . Whats wrong with trying new things . Look mommys new vacuum cat screech you feel that in your muscles . I do. Drink water. Its a long story. Well, not having branches lets us give you great rates and service. Id like that. A new way to bank. A better way to save. Ally bank. Your money needs an ally. Welcome back. It may welcome back. It may not look like it now but the fifth straight session, the nasdaq touched a 13year high. The question is whether it will close. Doesnt look likely now. Art cashin telling me the selling pressure is widening. Seema mody has been tracking the nasdaq. What happened to the strength there . Given how far weve come this year with the nasdaq up 30 , have you some traders taking money off the table. With that said the nasdaq is firmly above 4,000, trading in a narrow range today, Old School Tech names like microsoft Western Digital posting gains. A slightly defensive tone to the market. While we have microsoft up, the doj did approve microsofts plan acquisition of nokias devices and services business. Now its awaiting approval from the european union. In terms of whats leading the tech index lower its been another tough day for social media stocks. Goldman stocks downgrading groupon. Were seeing high volatility in what the market likes to call momentum player. Well keep an eye out on those names as Money Managers enter a period of window dressing that takes place the last couple of weeks of the year to continue to watch those stocks. Seema thanks. A goldman downgrade on names so social media is a place to watch. Decline of 78 points, holding steady, with 12 minutes left in the trading. Wow. The time is its letter than its ever been. It just flies. It does. There are hot deals abound today, thats why bill is thats how bill has been spending his time. You noticed that. Does cyber monday have enough heat to make our cnbc. Com hot list . 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[ male announcer ] how can power consumption in china impact wool exports from new zealand, textile production in spain, and the use of medical technology in the u. S. . At t. Rowe price we understand the connections of a complex, global economy. Its just one reason over 70 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. Eight eight minutes left in the selling session. Were down 85 now 88 points on the dow. Thats the lows of the session right there. Pulling back from those alltime highs we had been seeing early last week. Joining us to talk about the markets, jeff from Raymond James and bob pisani as well. Jeff, youre thinking about taxes. You think thats whats going on . People doing tax planning before the end of the year . The people i talked to on the retail side are talking about not selling, trying to carry profits into next year. Thats what we see on the retail side. My timing models that called for pullback, are calling for a pullback here. They say its a go ahead time to be cautious. If you get a pullback i think it sets up the fabled santa claus rally like your previous guest whats going on bob . We have weakened going into the close the last couple of weeks. Interest rate stocks are under pressure. Ism is strong, setting up the possibility of a strong jobs report on friday. Interest rate sensitive groups are getting hit hard housing, telecom is weak. This might be still about what the fed is doing, tapering becomes more likely on friday and thats bothering the market. You think,fy read you correctly, the dips weve seen bought left and right this is another dip to buy . I dont think its right right here, but further down if we break the 1760 area you could get a 5 7 pullback like we got a 6 pull back this summer. We are falling below 16,000 on the dow and 1800 on the s p. Weve had an incredible year. The target at 1900 on the s p next year. Jeff parker, his cute numbers for next year. 2014 on the s p pp. 2014 in 2014. You get it . Hes not the only one, by the way. Hes the most bullish im aware of on the street right now. Jeff, thanks for joining us. Were coming back with the closing countdown and after the bell this will not happen without government approval. Amazon sending drones through the sky to fulfill your orders. Its ironic a dying 20th century business could help make that a reality. Well explain coming up on the closing bell. In color. [ male announcer ] this december, experience the gift of unsurpassed craftsmanship at the lexus december to remember sales event. Some of the best offers of the year. This is the pursuit of perfection. 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Down 90 points on the dow a moment ago and back to 16,000 on the dow. Back below 1800 on the s p. Peter costa, were told its the smart money that trades in the last hour. Like i said, the last few sessions starting to see selloffs here. I think some of that has to do with this Trading Platform a lot of people use. They trade during the day and at the end of the day they try to unwind it. Thats what part of it is. Were getting toward the end of the year so youll see some selloffs at the end of the year. Where Retail Investors are back into it, Institutional Investors need to lighten up. Makes for better quarterly statement. I was just talking to jeff a possibility some people thinking tax implications, they want to take advantage of that. Might be a little early for that. Between the 15th and 30th youll see a lot of that as well. During the end you know, going towards the end of the day, youll see people unwinding a lot more. And yet seasonal tendency is this month, december, is usually the strongest month for the dow. We get that proverbial santa claus rally. We might still. I dont have any problem with us being up towards the end of the month, but right now a little pause. Not a lot of volume on the tape. Well probably see this a couple more times this week and next week. Down 94. We were down 96 a few minutes ago. Are you inclined to buy these dips yet . No. Im already fully invested. Inf anything, i would lighten up. How much are you willing to withstand to the downside . 5 . 5 youll see me out of a lot of stock. Peter, thank you very much. Coming off the low but it has been a late selloff again. Something to keep an eye on as we go into the month of december. That is the first hour of the closing bell. Thank you for joining us right now. Stay tuned for hour number two with kelly evans and company. Ill see you tomorrow. Youre watching the closing bell. Im kelly evans. Disappointing black friday retail sales leading to red arrows on wall street. The dow looks to have shed 80 point. It did lose the 16,000 point but regained it in the final minutes of the close. Red arrows across the board nasdaq down, s p down. The dow took it on the chin. Lets get straight to the panel today. Joining me down here at the stock exchange, sharon epperson, dani Hughes Matthew mccormick. Good afternoon to all of you. Weve seen a pretty sharp selloff, larry. What happened . Whats going no. Black friday is all about the fridays. What weve seen in a momentumdriving market is the bargains are better in the mall than wall street. I think in a momentumdriven market, anything can trigger it. Were worried about the jobs report. Were worried that could trigger a taper from the fed. I think were seeing a little unease as people want to take profits ahead of that. Its reasonable to understand. Conceivably the santa claus rally came and went with the thanksgiving weekend. Youre shouting. We saw this going into the close, shortened trading week but people said dont think too much about it dont overanalyze it. As we wake up, as art cashin says fourth session in a row, and first trading day of the month, and thats set the tone for the rest of the month so far this year. What do you make of it . I get concerned when you see volume to the end of the trade get weaker. I think its about expectations as larry talked about. Thanksgiving sales, some were good but some were underwhelming. People have had a strong run so it makes sense to take profits from highflying names. Are we seeing that in the retail space . Its been a little bit of a disappointment, as weve said and weve seen that in the Retail Stocks themselves. I think well see more of that. I think people have had a phenomenal what do you mean a big month for stock selling . Its time to take profit. Nobody knows whats going to happen in january, the first quarter. The fed might decide to taper. They might decide to taper this month as well. Thats on the table. I think people are concerned about that. When they have so much theyve made, they say let me take a little off the table. Sharon this typically we were sauking to jeff et cetera, its supposed to be a better month, at least a better period for the market. Were coming off a year where its been smooth sailing generally speaking. Its your sector commodities, gold thats taking it on the chin. Its not just smooth sailing. Its skyrocketing. Thats what weve seen for the last 18 months. Seeing a pullback makes sense. Especially when you do what i did, call your tax adviser and say, am i making the right move . What should i be doing . Theyll tell you you want to offset the losses the gains with the losses. Were seeing it with gold for sure. What were you invested in that you were harvesting losses . Its been a pretty strong rally in the stock market for most parts . Im in good shape but i do have to doublecheck myself. What we saw in the gold market if you looked at the ldl versus equity markets youll see an absolute divergent of those two markets. Its time to take some losses and offset them against the gains. Certainly people will probably be doing that right . Any losses they might have had in the market the last couple of years are kind of gone now. That behavior is going to diminish. Maybe its going to pick up for a lot of people who came into this year thinking the feds going to be in the game so im going to buy gold commodities. Thats been a terrible move. Absolutely. December is about window dressing. Momentum stocks have been driving the market. Ist also about tax loss selling. The flipside creates opportunity selling. Gold commodities, emerging markets those are the few areas you do have losses. Be mindful of the fact that creates a january opportunity. Perhaps investors should be rotating out of leadership into the laggards to make money. This is an interesting point. Is perhaps what were seeing a rotation out of the market. People have said its 11 great months. Maybe i can go into unloved sectors. What do you think . I think there could be rotation. I think when you look at people paying sky high premiums, even though amazon has a drone, 1250 trailing pe. Thats expensive in my book. Great company but i think people are looking at valuations quality and maybe looking at dividends saying hey, why not take cream off the top. Go to something cheaper higher quality, better Balance Sheet strength and prepare for next year which could be a bumpier ride than most people expect. If that were the case gold did not get a bid today. Gold had a bad day. Gold definitely had a bad day. I think there are some people, like larry said, that will wait and in january theyll enter the market again. Everybody wants some protection in their portfolio regardless of where gold goes. But still those are saying this is the time i have to figure out what has been a loser, if they have some gold in their portfolio, thats where theyll sell. And a lot of money on the sidelines still. That great rotation weve been waiting for, out of bond, into the market, its just starting to happen. I would also say a lot of that money has gone into alternatives as well. Were not seeing that coming into the stock market. I have have talked to a lot of our clients and many are waiting for the pullback that still has not come. I think youll see a lot of participation if the stock market does come down considerably, youll see a lot of players come back in. Lets get a little more info from steve grasso coming off the close, joining us from the floor of the exchange. What are your thoughts about whats happening into the close . I think youll see a lot of people taking profit, thats expected. The truth is no one has any clue how low we can get from there. Everyone is constantly buying the dips. You cant time it perfectly. The longterm investors winds up staying long in these investor moves. Im thinking through this for a second. Should i look at this steve, as potentially a warning sign that theres going to be more trouble ahead . Look, weve seen what a 15 increase in the vix over the last ten trading sessions . If you wanted to put together a case about rockier times over the next couple weeks, youd make the case. You could definitely make the case. Going into year end, everyone expected the market everyone was looking for that correction. Whether it be 5 or 10 . It never happened. Now everyones starting to just say, let me throw in the towel and buy it. Thats where you sort of get a little nervous where everyone throws in the towel and says, okay, im on board. Personally for me, i wound up selling my google position. Im waiting for a pull back in the overall market to buy that on a dip. I am bargain hunting but majority long this market. Larry . Were up eight weeks in a row. As dirty harry said do you feel lucky . Thats what you have to say. Its the best in a decade. We havent had a correction in two years. Momentum ultimately rolls over. I think this is the first were seeing of that. Doesnt mean there arent opportunities but you have to look elsewhere. Larry . I agree. Youve had a great run. Dont press your luck. Steve real quick. How much did you pay for google . Where did you get in . I was sub 900 in google so i had an incredible pop so i sold around 1,020 or so and then traded down. I was looking underneath 1,000. I got close on that pullback but couldnt get it. I am a fast money trader so im looking for ins and outs. You cant turn around a ship of billions of dollars the way i turn around personal money. I wondered how indicative that is of the general behavior were seeing here. If the bigger ships are turning at this point, if thats something we need to keep an eye out for. I would assume the bigger ships arent turning. They might be curtailing a rally edge nipping and tucking going into year end just to see what they want to have on their bladderblad blotters come the first of the year. I would say a large part of them are staying in this marketplace and a lot of Retail Investors should probably stay involved in the market. If they want to peel back take profits. No one ever went broke taking profits. Before we let you go, put this i think it summarizes a lot of a lot of the conversation people are having. Comes from bank of america. Theyre talking about bearishness among wall street when it comes to what theyre doing with client money. People are actually generally underweight equities. The average port foal dwroe allocation according to their survey is 53 . Well below the 65 average equity equity. Kelly, if you have a print in the s p of 666, youll get a lot of guys that definitely dont want to get rushed back in. I know its been a couple of years, but they dont want to look at their 401 k and be chopped in half again. But i think a lot of people are looking at their 401 k s. They remember having seen the market go up and how much of a loss they took. Now, theyre looking at some of the profits they have on the table and they want to have some of that in cash, as dani mentioned, they want some protection there. They know cash is king and thats the best protection. But theres no growth in cash right now. Unless we start to see rates increase. So much growth not everybody not everyone is super greedy. They want to make sure they can keep what they have. Im not arguing your premise. My point is when you go to a Cocktail Party and everyone tells you theyre up 20 or 30 , 15 even, you want to be involved in that. Definitely. Steve thank you, sir for the insight. Good job on google, i guess. Stick around and catch steve grasso coming up on fast money at 5 p. M. S p 500 up nearly 400 points this year alone. Someone here sees it hitting 1900 by the end of next year. The 2014 outlook is next. Blockbusters mena change . What does it moon for consumers. You dont want to miss that discussion. Millionaires are feeling confident again but not necessarily in the stock market. This sounds familiar. Wealth editor robert frank will tell us where and why theyre plunking their riches. Welcome back to closing bell. Want to september it over to dominic chu. Krispy kreme doughnuts falling in afterhours. Investors are focusing on their outlook. They said fiscal 2013 in terms of profs will come in below some street expectations. Shares down 10 , kel y in the after market. Well keep an eye on those shares. Back over to you. Do they indicate where the softness is, just looking through the release . Were scouring for some signs right now. This stock has been on an absolute tear. Rising from the depths back to the financial crisis. People are starting to like this stock again. What were concerned about is whether or not there is any perceived weakness in those particular results. Remember, the stock is going to be pretty good as well. Thats a pretty decent sign as well. I want to break in quickly with breaking news right now. We have some releases now from the Federal Reserve bank. The headline here is the Federal Reserve does not object to resubmitted capital plans from both jpmorgan and goldman sachs. Basically that means both of these banks have made substantive enough changes to capital and Risk Management processes. Fed asked both of these banks to resubmit plans for returning capital to shareholders via dividends and stock buybacks. The fed put those Capital Improvement plans in place to help prevent risks to the Financial System just in case theres another economic downturn. Breaking news also from the fed side of things with regard to jpmorgan and goldman sachs. Back over to you. Doughnuts and making doughnuts. Thank you, dom. Those shares moving just a little higher after hours. The s p 500, though bigger moves. Up 26 already this year. Will next year follow up such a great performance with equally positive numbers . Bemo Capital Markets put their outlook, target on s p, 1900 thats relative compared to others weve seen. Brian belski joins us. Thank you for joining us. Thank you. The 1900 points, thats less than today. We have not been one of the johnnycomelatelybulls. Weve been bullish since Fourth Quarter of 2008. A lot other peers have become bull irn. Last years target on the s p was 1425. Closed at 1426. This year hes in other words, youre taking a victory lap . No. Sometimes i think investors need to hear one year of making correct calls because a lot of times people come on tv and throw a lot of numbers out there. But we have a track record were proud of and it speaks volume of the business weve been able to do. Let me put it this way. I looked at morgans numbers earlier. They have a yes, intended 2014 price target for the end of next year. They get to it by 6 to 8 Earnings Growth 3 share buybacks, a little multiple expansion but how does that get them 100 point higher than you . I cant speak to their process. We run a fourprong model, regression, pe and means reversion model. Our model has been pretty accurate the last few years. We havent had to make a lot of changes. Im not going to speak to swin elses process can you explain to us from the bottom up how are you building to that 1900 . We look at four different modelses models, one is our dividend discount model, which has been extremely accurate. As risk premium continues to fall, the market will continue to go higher. However, we have a very differing view on how we get to 1900 in aggregate. We think the first half of the year will be much more bullish. By the way, we think the market peak will be well above 1900 in the first half of the year. We think ultimately tapering will the escape goet to the pullback. The taper. Yes. And close at 1900. We could be significantly below 1900 in the third or Fourth Quarter and rally back up at the end of the year. Stay right there. Want to add another voice to the conversation, peter schiff, author of why the economy grows and crashes. Hes not as optimistic for next year either. Walk us through what you expect to see in 2014 . I think if the fed does taper, the only way well get a rally is if they undo the taper and start doing more qe. I dont expect janet yellen to do any tapering at all. I continue her to talk about it but not do it. I think investors are underestimateding the severity of the problems that underlie the structure of the u. S. Economy and the degree to which the fed is exacerbating those problems with qe. I think well get more qe but its not that bullish but will preecht the bear market. I think it will cause investors to look oversees, the markets theyve been ignoring as they trip over each other to buy u. S. We agree with part of it the tapering could be held off longer than most people think. This tapering situation will be all about the economy recovering and, quite frankly, employment. We dont think we get a good picture on that until the end of the first quarter. With respect to growth elsewhere, we think that was the last cycle trade. The next cycle will be about cash and stability. The next was about credit and leverage. These emerging markets in europe will be deleveraging. The u. S. Has already done that. We think the Biggest Surprise is the u. S. Puts together another strong year in terms of positive performance relative to the rest of the world. In term of the stock market or gdp . I dont know how you say the u. S. Is delevered. We have more debt than ever at the government level, the corporate level, the individual level. We are loaded up with debt. All this deleveraging is amiss. The only thing keeping us alive is zero Interest Rates in qe. If a lot of people gree or sympathize with the idea this all ends badly at some point thats different from saying it will end badly next year. What are your recommendations for people who are looking with their portfolios at maximizing their return next year. Hardly anybody agrees its going to end badly. Thats the problem. Those that think its going to end well, which is why theyre making the mistakes theyre making and ignoring buys things like gold. You mentioned gold is starting off the month lousy. Its been a lousy year for gold because so many investors incorrectly perceive a recovery that doesnt exist. They think were deleveraging. 2014 . Were more deleveraged than ever before. I think investors have to ignore what everybody is buying that doesnt understand the fundamentals and look to what everybody is overlooking. Such as . Well i mentioned in gold but i think you can be in some of these emerging markets or foreign stock markets that will benefit from the weakness that is going to come in the u. S. Dollar. You know people are expecting the dollar to rally because they believe the fed is going to tighten, we have a rove when they wake up to the reality of a faltering economy and more qe the dollar will weaken and undermine the phoney u. S. Recovery because a weak dollar is going to put even more upward pressure on consumer prices. It will make it hard for the fed to pretend theres no inflation. Its requesting on put more pressure on the long end of the bond market. Meaning the fed will have to print more money to keep Interest Rates from rising or let them rise. Thats just going to add more problems to the economy. Brian, a Quick Response . Well, i would say that corporate Balance Sheets are the strongest since the 1950s. Clearly Corporate America is delevered. Theres three legs, Corporate America, Consumer Credit where theyre cutting up credit cards and starting to delever. Government is easy answer on deleverage but i would caution people to continue on the same cycle trend trade, what led us down this path 2010. Its not going to lead global markets. I would be worried about dipping their toes in emerging markets emergeing markets have not been the leaders. Its a theme we have to come back to. 19 19 1900, there you have it, bmos target for next year insure wealth editor robert franc will give us the latest on what they are investing in. [ male announcer ] here at optionsxpress, our clients really seem to appreciate our powerful, easytouse platform. No, thank you. We know youre always looking for the best fill price. And walk limit automatically tries to find it for you. Just set your start and end price. And let it do its thing. Wow, more fan mail. Hey ray, my uncle wanted to say thanks for idea hub. O well tell him i said youre welcome. He loves how he can click on it and get specific actionable trade ideas with their probabilities throughout the day. Yea, and these ideas are across the board bullish, bearish and neutral. I think you need a bigger desk, pal. Another one . Traders love our trading patterns, now with options patterns. Whats not to love . They see what others are trading like the days top 10 options trades by volume and get ideas yea i have an idea how about trading that in for a salad . [ male announcer ] so come trade at the place thats all about options and futures. Optionsxpress. Open an account today and get a 150 amazon. Com gift card when you call 18883303137 now. Optionsxpress by charles schwab. So i c an reach ally bank 24 7, but there are no branches . 24 7. Im sorry, im just really reluctant to try new things. Really . Whats wrong with trying new things . Look mommys new vacuum cat screech you feel that in your muscles . I do. Drink water. Its a long story. Well, not having branches lets us give you great rates and service. Id like that. A new way to bank. A better way to save. Ally bank. Your money needs an ally. Welcome back. Want to welcome back. Want to get you new information on how fast that deadly commuter train was traveling yesterday morning when it derailed in new york. Mary thompson joins us with details. Reporter the ntsb just completed a press briefing talking about the preliminary data that its found in its Ongoing Investigation into that fatal crash on sunday, which killed four and, of course, injured 6 3. They say data taken from the black boxes on the rail car shows it was going 82 miles an hour going into a 30mileanhour zone. Of course, that 30permile zone is a big bend when the train derailed. Tillically its going 70 mile an hour. The train speed was higher than normal. They said at this point its hard to say whether it was human or mechanical error but they said there were a couple of mechanical findings they had. First of all, they arent aware of any problems with the brakes but the data they retrieved today did show six seconds before the train stopped the throttle went to idle. Thats late in the game when youre trying to throttle down a train, to have it stop just six seconds before the train comes to a full stop. They say its late in the game. Same thing with the brake pressure, which went to zero five seconds before the stop of the lookcomotive. Thats what they say again are late in the day. We heard they were going to speak with the engineer. They did speak with him today and that will continue the next couple of days. Drug and Alcohol Testing has happened. They wont have the results of that for the next couple of days. Thats exactly what i was going to ask. What information, if any about the status of the conductor. If he fell asleep, for example. It was very early in the morning on sunday. As has been the case in other incidents,there might have been texting involved. Reporter right. In that case they did retrieve his cell phone and doing diagnosticics on that. Its too soon to say whether he was texting or engaged in some way with his cell phone at the time of the crash. As far as being asleep at the wheel, that will probably be determined if, indeed, that was the case as the investigation continues. 8 2 in a 30. Mary thompson thank you very much for following that story for us all day. The mojo is back, at least sort of. Millionaires are saying theyre confident again. Not about everything but our wealth editor robert frank joins us with some details on where the wealthy are and arent confident these days. What can you tell us . The spectrum millionaire index shows millionaires reported their biggest increase in confidence in ten months. Their month to month increase in assets biggest gains since 2007 but theyre not confident about the stock market. A growing number saying theyre not going to invest at all in the next 12 months and a declining number who say theyre going to put money into stock and stock funds. Where are they putting their money . Real estate and cash. What theyre really doing now is looking for safety hard money they can hold on to in case things go bad next year, theyll have that money as dry powder to maybe bias sets. I want to bring in our panel briefly. It sounds to me like another contrarian indicator. It makes me nervous. Nervous how . Well, when you see people that theres a sense of euphoria, where you see these indices that wait a minute. Hes saying the opposite. Theyre not confident in the stock market which is why i was joking saying it was a good point i look at it this way. Where you see the index stock to increase, millionaire index is at high levels but a degree of skepticism it makes me feel you look, all is not well within the underpinnings of this market. Believe me, i would love to see 2014 on the sbx but i cant make the mathd work. Median income of the u. S. Lowest level since 1995. 1 percenters have it all and people underneath are struggling. I cant make both ends work to a higher stock market. Thats absolutely for sure. Sharon, i want your take on this. If millionaires arent loving the market good or bad . Millionaires arent loving the market thats bad for everyone else because people follow what millionaires go. But they tell us they have a positive outlook about real estate. Thats one area some individual investors need to think about more closely. Its not just this study but other studies, by fidelity stock market versus economy versus real estate or business spending, stock market comes lower on the list for millionaire investors. Its something to keep in mind. Its not just this one report. Confirmed across a number of reports. Robert frank thank you very much. For more on the markets final hour, fadeout, well have that segment coming up. That discussion on just what led to that selloff into the close today, echoing a pattern weve seen over the last couple of sessions. Click, shop, buy. On this cyber monday were asking if brick and Mortar Stores are going the way of blockbuster video. Whats that . Surely people still know what blockbuster is. Stick around because the iffy future of Retail Stores you have to drive to is coming up after the break. Also ahead hold the pickles, pass the paycheck. A fast food worker will join us to weigh in on the major controversy surrounding the minimum wage. A National Protest is planned later this week. Will it get the conversation going now about what should be done about it. [ male announcer ] what if a Small Company became big business overnight . Like, really big. 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And provided by unitedhealthcare insurance company, which has over 30 years of experience behind it. With all the good years ahead, look for the experience and commitment to go the distance with you. Call now to request your free decision guide. O0 c1 welcome back. Today is welcome back. Today is expected to be the Biggest Online shopping day of the year. Hence, the name cyber monday. Jon fortt has been tracking the numbers for us. What can you tell us about how the days going so far . Importantly, how much sales are up compared with this time last year . Well i dont have the retail Realtime Data but ive got the next best thing, adobe data expecting 2. 2 billion in cyber monday sales, up about 15 from last year. Their predictions for thanksgiving and black friday seem to have come in as expected. Thats probably where we are. Lots of doing, obviously. Its still early on the west coast, for instance. Thats true. How much will we know about this idea about cyber monday we know generally ecommerce is stealing share at least expanding the category generally. How important is it whether today is up for example, 13 15, 20 . I think its really important. The part thats most important is how mobile performs. The thing thats been sticking with me all day is the blue nile ceo on squawk on the street telling us 60 of traffic that he saw was from mobile. About 25 of revenue from mobile. So, this is gap between the people who are looking, using their mobile devices, and what theyre actually buying. Thats the sort of space where lots of technology companies, lots of consultcies will come in and try to close the gap. I wouldnt be surprised if three to five years we see mobile overtaking what we think of today as the pc as the purchasing platform of choice. Absolutely. The trend clearly in place. Jon fortt, appreciate it. Speaking of which, while we talk about online and mobile sales ticking up more and more brick and mortar retailers, can they stick around in this kind of environment or will they have to go quietly in the night, go the way of blockbusters, for example. Joining us are a couple of analysts. Welcome to you both. Traditionally brick and mortar establishments have built out their Online Presence but what does this mean for the fate of the actual stores . Well, i think there is no question that the Big Box Stores are in trouble. Thats really the sector that were going to see the biggest shakeout. There are more stores in america per capita than any other country in the world. Theres no question were overstored. But does that mean that retail is doomed . Physical retail is going to go away . Absolutely not because certain sectors will continue to thrive. Restaurant sector branded manufacturers, companies located in the alist malls the Great Properties that do continue to drive and attract traffic. They will continue to thrive. I think about my own hometown where downtown went from being a series of shops to cafes and restaurants. As she indicated, that seems like a place you cant lose shares to amazon. Foot traffic is decreasing but people are going to those stores to see what they want to buy online. Black friday, sales were up to 92 Million People shopped online compared to 89 million. Its not looking good for retail. Jon, thats why i wonder. If youre a traditional retail establishment, are your doors as a brick and mortar numbered . Czink i think it depends on what you do. Restaurants arent going anywhere. If you sell anything that closely competes with am simplon sales, your days are quickly coming up. Am glon is everywhere these days, even delivering on sundays. Their breadth of products cross anywhere from things with groceries, amazon fresh, to far reaches of electronics and everything in between. This has farreaching implications over the next couple of years because people have seen, for example the blockbuster be replaced by a dry cleaner, but if they are going away, its not just the shop owners who are nervous, it really means these kind of commercial spaces will have to find other tenants or it will be a tough slog. Absolutely. And i think thats where a lot of real estate executives are looking, is what are some of these alternative uses of the real estate. Is it going to be more medical offices . Is it Charter Schools . Are there you know, who are the tenants that will survive . Particularly, those b and c properties are really struggled. They may be anchored by office max or struggling retailers. Those are the ones they have to think about what to do with that office space. Yeah. In the meantime perhaps, some minds thinking about how to remake some of our american towns and cities in the meantime. A fascinating story to follow. Appreciate your time this afternoon. Thank you very much. Thank you. Now, costcutting deals these days are dwarfing web traffic. Or drawing, web traffic we should say. Theres plenty of action at cnbc. Com. Yes, the cnbc. Com hot list is coming up next. Before their gift helped preserve the point. Before a credit solution was used to expand their business. Before trusts were created for their grandkids educations. They chose a partner to help manage their wealth. One whose insights solutions, and approach have been relied on for over 200 years. Thats the value of trusted connections. Thats u. S. Trust. Thrusters at 30 i cant get her to warp. Losing thrusters. I need more power. Give me more power [ mainframe ] located. Ge deepsea fuel technology. A 50,000pound, ingeniously wired machine that optimizes raw data to help safely discover and maximize resources in extreme conditions. Our Current Situation seems rather extreme. Why cant we maximize our. Ready. Brilliant. Lets get out of here. Warp speed. Welcome welcome back. A new week on wall street, new batch of stories drawing eyeballs on our website. A look at whats leading the hot list. We just had a little excitement here on the website. You know that market downturn youve been talking about, the slide . Check this out. We had at least about 6,000, 7,000 people just dive right into the site right into our market coverage, giving us a nice boost at the market close. A little excitement here. Now the best stories that weve got right now, right now our best story is actually a question. Did amazon just pull off the best pr stunt ever . Because thats remarkable timing that mr. Bezos goes on 6 0 minutes and starts this drone buzz as we go into cyber monday. We asked a few experts about it. Our very own katie little put it together in a feature story and readers are heating up at about 60 people a minute right now. Number two on the list, an interview earlier with david costa of goldman sachs. He said, 2014 probably hit s p 1900 but you may have a 10 correction in there somehow. Thats obviously getting attention of the readers. I think theyre coming to check out the market and say holy cow, what is this guy saying . Next stronger story, warren buffett, always a big pull for us, mr. Buffet. A nice little story about him. He doesnt even want his old Berkshire Hathaway headquarters. Theyre trying to get rid of it in new bedford, massachusetts. Apparently no one wants it but the mayor is going to try to get someone excited about it. Those are the top ones. I can see them try to turn it into a landmark. I want to go back to the first story about the drone and amazon. In other words, if im jeff bezos trying to draw attention to what im doing, why not come out with the octocopter and get everyone talking about it . It is actually ingenious. The experts we talked to with that amazon buzz you get amazon top of mind. All of a sudden youre thinking about your christmas list, you say, i saw that story about drone copters is there really a onetoone connection . Ad experts say its top of mind. Thank you for joining us. Coming up, fast good workers are planning a nationwide protest thursday. Theyre upset about the minimum wage. One will join us to state his case. Keep it right here. [ male announcer ] heres a question for you. If every u. S. Home replaced one light bulb with a compact fluorescent bulb, the energy saved could light how many homes . 1 million . 2 million . 3 million . The answer is. 3 million homes. By 2030, investments in Energy Efficiency could help americans save 300 billion each year. Take the energy quiz. Energy lives here. [ male announcer ] this december, experience the gift of exacting precision and some of the best offers of the year [ ding ] at the lexus december to remember sales event. This is the pursuit of perfection. [ bagpipes and drums playing over ] [ music transitions to rock ] make it happen with the allnew fidelity active trader pro. Its one more innovative reason serious investors are choosing fidelity. Get 200 free trades when you open an account. Welcome welcome back. Fast food strikers will be working again, at least for the day. On thursday its expected 100 cities nationwide will have much slower fast food when their workers walk off to protest making minimum wage. Currently 7. 25 an hour or not much above it. They want a raise to 15 an hour. The National Restaurant association calling it a publicity stunt. Joining me Devonte Yates from milwaukee, wisconsin, making 7. 25 an hour and will be striking on thursday. Good afternoon and thank you for being here. Thank you for having me. Can you tell us a little bit about why youre deciding to walk off the job on thursday . Well, i decided to walk off my job on thursday, quite simply, to show the corporation that i work for, mcdonalds and to show other people that fast food workers arent just you know, simple people. Like, we have lives, too. By me walking off the job im going to show my Corporation Without us hard working individuals, their companies wouldnt be able to thrive as they do. By us going on a strike and showing them that, you know, we too can come together and have power, we can, you know negotiate things. We can talk about things and that, you know. Sure. There has to be a gap closed between us. Like i said, if it wasnt for us, these companies wouldnt make as much money as they do. I believe they should be able to pay us more so we can live our lives and be happy. How much of this comes down to a decision made by your direct bosses, your managers and how much goes back to the federal minimum wage or mcdonalds as a corporation . Mcdonalds as a corporation has, you know, has well over enough money to pay their workers, you know, pay us what we deserve. You know, its not, you know regarding the federal minimum wage, that can be raised. Two, these corporations know they have enough money to pay us. It doesnt have to be a federal level. It can be on a corporation level. I mean, have you asked for a raise before . I have. By myself. I was pretty much told you know, its going to come eventually. Just wait. You make 7. 25 minimum wage now. How long have you been earning that wage . Ive been earning that wage since i started about six, seven months ago. Okay. And are you expecting that your pay will increase in the months ahead or are you hoping will increase or are you only hoping to this v this job for a short period of time . Im hoping to have the wages increased. We should be able to get our raises because we do what the Corporation Corporations ask of us and we do it well. Do you get Health Benefits . Not at all. Is it because you work less than 30 hours a week . I work more than 30 hours a week. Have you tried to look for other work . I have tried to look for other jobs and other higher paying jobs. A job is not going to call you overnight so i have to stick to what i have. Really appreciate devonte calling now. Its smart business. Okay . To increase it. These people these minimum wage people are the human representation of this brand, of mcdonalds, of walmart. It makes a lot of sensement look what ford did. He increased his workers wages by 100 and those people were buyers of the ford brand for generations. I think it goes a long way in terms of branding. Its a highly competitive industry. Brand loyalty is something that you definitely have to consider. More important, people have to have a living wage. So thats something that needs to be considered as well. And and. We know that that ratio of profits to labor is actually at historic highs. Now would be the time would it not to redress this . Unfortunately. I think its going to backfire. What you will find is low wage jobs get outsourced and automated. If youre costco you can pay higher wages because you have a value proposition. So its not always about the lowest cost. I dont know who has a bigger pr problem. Were soon going to find out. What were basically saying to retailers is go ahead and pay people a higher wage even though you dont have to. Its up to them to say why should we . Lets face it. These are low skilled workers. He wants a raise after six months of work. He doesnt necessarily want a raise, he wants to make enough money that he can live off of. There is is a difference between a living wage and a raise. I understand but ultimately if you want to reduce this down to stock value, no one is going to pay 10 for a hamburger. This is not going to happen. If it increases that cost basis it will drive more innovation and not necessarily increase prices for the consumer. Then pay him 30. What is enough . He is a low skilled worker. And you look at it, he is replaceable from somebody else down the street. Their job is to get the share price higher not pay a living wage. Higher wages means less labor and less money. Maybe were at a different point. Guys thank you very much for the debate. This is an extremely important issue. Stay with us. Stacys mom has got it goin on stacys mom has got it goin on stacys mom has got it goin on [ male announcer ] the beautifully practical and practically beautiful cadillac srx. Get the best offers of the season now. Lease this 2014 srx for around 369 a month with premium Care Maintenance included. 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. Here are some of the tweets we have been getting in today. Amazon just found another reason not to post any profits for the next decade. Drone delivery . How do they assure there is not a small bomb delivered to your home . How could they deliver a bomb. Who doesnt want a little drone . How cool is that. A lot of people making the point that that job used to be an entry level or position that you move up and move into a different industry from. There is no other job. What we didnt know is what he did six months ago. Want to clarify mcdonalds does offer benefits franchise by franchise. We have not seen any walkouts that were going to see and that may catch fire. Thank you so much for joining us. We will continue to think through the market melt down. Hope the rest of you have a great day. Fast money will start in a couple of seconds. You might have noticed that go go was up 17 . They got permission to install satellite capability. Its a big step to offering go go wifi on international flights. Planes are no longer a refunl. No more. Fast money starts right now. Here is tonights line up. Feel like you have missed the run in . Stocks have four ways to make you money before the end of the year. A 3d printing stock is getting a pop today. Up veils a full color printer. Discussi