Transcripts For CNBC Closing Bell 20141107

Quietly introduced yesterday and promises to be an in home assistant to respond to the voice commands. If you have sy ri on the iphone, do you need that . Stock continues to lag. A lot may be riding on the surprise new device. What its about and what it means and brings to the table here in technology. Yes. We will. And now market where markets stand in the final hour of trade. Back and forth today, up and down on the back of the payroll report. Right now, the dow off 8. Is weaker by about 1. Nasdaq off 13. We should mention, of course, yesterday at least the dow and the s p closing at alltime highs here and just slightly below the levels for right now. Musics like game of thrones, isnt it . Parallels, im sure. Lets get to the Closing Bell Exchange for a friday. We have jeff taylor with us today. Ken mahoney, mike laguni, heather loo mismis and rick santelli. Heather, what did you make of the jobs report . Pretty strong. I think it continues a long trajectory of pretty good trends on jobs and encouraged to see that development. Ken . Yeah. I think its going back to this old wall street saying like this. When markets climb, they take an escalator. But when stocks come down, they come down by a way of elevator what you saw a few weeks ago and whats surprising and how strong this market is, we took the elevator back up again and we have a vshaped Recovery Time and time again and we have to live with the volatility and embrace it. Tie it back to the jobs report. Jpmorgan and others says maybe within the next year, why does that have something to do with the snapback of markets or no . I dont think so. I think it feels the fed tightening is a ways off and probably think Janet Yellens company weighing longer for more evidence that we have a runaway economy. Jeff taylor, would rereally want obvious, we want stronger jobs reports and people working. But from an economic standpoint and the Financial Markets and so forth, do we want that much stronger . Because that means the fed is more likely to be raising rates sooner rather than later. Thinking as a market person now. We always want to see a strong jobs report and what stook out to me is a sixyear high of 25 to 30yearold aim demographic of employment and we track the employment population ratio. Its a 76 in the month of october which, again, a sixyear high. If we start to get that age group back into the Housing Market, and they start to be employed and start to actually firsttime homebuyer takes advantage, that could really ultimately start from a broader economic perspective, start to really be a catalyst or the Housing Market coming back and a broader economy. Jeff, you have an interesting point here, though, about one of the more difficult pieces of the labor market recovery. Talk about the difference between a lot of jobs creating and have created here today compared with the ones that were lost. Great point. So the jobs are created today are about a 40,000 a year annual salary. Six years ago there were about 60,000. So thats a huge deal. Thats a third. Looking at situations of people saying i want to make a significant firsttime purchase, a house, a car, the savings are much less and it is harder although the jobs numbers are improving, where theyre putting in the bank for savings and big purchase, thats not necessarily translating into the savings account. Yeah. Mark, obviously, a very volatile month of october for the u. S. Equity markets. November not so much. What is the next catalyst youre looking for to move this market and which way do you think it goes . Well, bill, i think directionally upward over next six and 12 months. Were back up to where we were in the middle of september which is i think at the intersection of full valuations in the u. S. Equity market that demands good news and todays report while on balance i think pretty good it met expectations in terms of what the market demands given a 16 times forward multiple on the s p 500. Do you think we just meander meantime . I could see us in a fairly wide trading range that grinds higher predicated upon Earnings Growth. I think that we have seen the best of market multiple expansion driving equity Prices Higher and means more demand placed on Earnings Growth and so far we havent been disappointed on that front, certainly for q2 and q3 an continuing to see mid to upper single digit growth thats where it can grow commiserate with. Rick, theres a whole transformation happening here and i would like if you can the message its sending. Stronger u. S. Dollar, the steady drift upward in u. S. Interest rates, whens happening in the oil space now. I mean, what is the message here . Well, i think the message on everythings terrific. Its all about the American Energy renaissance and i think were writing a chapter of repricing global oil and even though our oil is fungible and its not necessarily to make prices drop dramatically here, if youre the big boy and youre throwing in, if we get exports and i think the new congress will consider that, then you can make a difference. I think we are changing the price structure of energy for the next generation. Thats a good thing. Higher or low, rick . I think lower. I think the technology is just amazing. Yeah. And, you know, all the stories about fracking, contaminated the environment, you know, theres stories out there and independent studies finally getting done by major universities that show that it isnt the technology of fracking thiss a problem. Its the state of how they build the wells so, of course, you are some uses for the government. This is one of them. Just like building a house. They need to have some of this signed off on. In terms of Interest Rates, today it was easy to tell if the market was happy or sad with the quality of the jobs report because Interest Rates dropped like a rock. And i think that says it all. Its good but not good enough. And with regard to any of the other issues on the dollar, listen, i think that the dollar going up, ive always thought that id rather have a stronger dollar verse a weaker dollar. Theyre putting the dollar index where its at. Im scratching my head a little bit at Interest Rates and seems like, again, while were still not quote unquote there, more and more people are looking through the details of the jobs report and even sort of an increase in wages saying, you know, signs are pointing toward the fed moving next year and not if markets pricing in anything hawkish and do you think its the jobs report today or Something Else in the world that would have pushed rates lower . It was the jobs report at 239. We were basically down to 239 and then 231. The boon acted the same way. The dax. The equity markets around the globe acted the same way. It was a good improved number and once again, the u. S. Economy is better than the other economies of the world. Are we supposed to be happy . Relative e value igss only take you so far. We need 400,000 jobs to make a dent in the 92 Million People that arent looking for work anymore its a step in the right direction but they have thrown everything including a volkswagen and kitchen sink to get it going. It really isnt enough. Yeah. We need free toasters now, as well. I think that ricks point also, we have so much slack in the labor market, until thats absorbed, we wont see a rise in the wages. Thats going to continue to hover flat and we have to see that slack taken out of the labor market. Let mess move on to investment sectors, ken. Im sorry. Heather loomis, would you buy energy here . If you buy ricks notion of repricing the Energy Structure here in the United States, in fact, globally, would you buy energy here . Is that good or bad for the industry right now . Right. Well, we are looking at a bond market perspective and energy outplaying the high yield portion of the economy and much more leveraged and we are not buyers of the energy right now. Ken . You know, we think oil is a story for remainder of the year and for next year. And if you kind of look at it, look, we know oil prices are low and not ephemeral. By january, going up again. No. We think it could they this range for a while. Think about the compounding effect as if youre going to the mailbox every day getting a check of the government. Thats the stimulus involved. We think its a net positive if oil stays down for extended period of time, start seeing, you know, revisions for gdp, earnings for companies, its a really, really net positive. You know the capx point here, ken. The ton of the Capital Expenditures that u. S. Corporations make in this company contributes to gdp and from the energy and production space so you take some of that offline, you will have a drag. Right. But two thirds of the economy is consumer bases. Particularly feeling better about it going to the mailbox and get that extra stimulus check in the form of the foreign tax of oil and i think its a net positive and an offset of capx spending of companies. Heather, quickly go back to the question of rick an i were debating and love your perspective. Why did Interest Rates move lower on the back of the jobs report and shows if not amazing progress, steady progress of conditions of the fed to respond to next year here. I think it was the waging component of the jobs number that people were focused on because that showed about 2. 1 year over year growth and from the perspective of the market, that wasnt enough to push the feds hand towards tightening so you saw the fed funds future pr. Got it. Thank you all, folks. Have a nice weekend. Thank you. Thank you for joining us. Thanks, everybody. Lets send it over to dominic chu with a quick market flash for us. Were watching shares of allergen saying if valiant pharmaceuticals were to make an increased bid for the company, the board would consider and repond to it in due course. Earlier today, bill aikman who is making or trying to make a hostile takeover bid for the company said that valiant could raise the offer. Allergan shares down by about 1 . As for valiant shares, down about 2. 5. An interesting new piece to the back and forth, kelly and bill. I love that. Hey, if you make a higher bid, we might be willing to maybe. Entertain that one. Pay us more. Yeah. Love that. Thank you. And the markets still under pressure. The dow off about 11 points. Same for s p and nasdaq, as well. After hitting record highs earlier this week. Coming up, what a crazy story. Amazon very, very quietly rolled out this voice activated speaker yesterday. Connected to the cloud. Its called the echo. Get this, buying the digital assistant is by invitation only. You heard us right. But will echo even move the needle on the stock thats down 25 this year . Pros will weigh in on that coming up. Up next, magnum hunter, maybe thats because oil is bounding back, as well. Good news to a shale producer like magnum and the ceo gary evans joins us when we come right back. Stay tuned. Welcome back. Crude oil trading to the upside today, closer to 80 level than 75. Jackie deangelis watching things for us. A pop at the close for crude oil. We finished today at 78. 65. Technical buying and a big move in heating oil to lift crude oil higher and i dont want to overstate. This is a pop that traders expecting for quite sometime. Before we potentially take that leg lower, you did have slightly weaker dollar today and again 87 handle is not a weak dollar. Still under 80 right nouchw. Traders saying when the sentiment turns bearish, it is time to buy the trade and thats what you saw as we head into the weekend here. But traders saying that we could see more volatility next week. Watch for that. Back to you. Thank you. We certainly will. Plus the next guest divested more than 70 million in the Oil Properties and almost completely exited the oil space. Having said that, though, we want to talk about shale oil and what it means to the economy. Joining us now for what the low coast of shale means to the industry, ceo of Magnum Hunter Resources joins us, gary evans. Good to see you. Good to see you both. Thank you. What happens to the burgeoning Shale Oil Industry . Are you guys your own worst enemy for producing this and much pushing the price down . Well, theres no question that our industry has a floor. We cant continue to drill wells at lower prices. Id think that youd have to get prices down in the 65 range to cripple industry and i think what saudi arabia is trying to do here in the u. S. Why do you think theyd want to do that, gary . We have taken a lions share, a chunk of their production. You know . We are not importing nearly as much crude oil from saudi arabia as two, three, four years ago so they can only afford this for a short period of time and thats what the market is missing here. This is maybe a six month at most a year situation an youre not going to cripple this industry. Our costs keep coming down. Fortunately, we made a decision about two years ago to exit most of our Oil Properties so we have sold over 700 million of our oil and primarily today 65 , 70 natural gas. I was going to ask you why the sale now . Do you know something we dont . Do you feel like youre sitting at the top . Im negative on oil over two years. We put in a lot of floors, protect us. Like today, even though oil is 78 a barrel, im close to 100 because we hedged our oil and were down to just 3,000 barrels a day of crude oil and the company producing 32,000, 33,000 barrels a day net and small percentage of the production. We are a gas company and thats where i think the future is for the oil and gas industry in the country. One more question on this. Are you saying you dont think you guys can make money in the Shale Oil Business at these prices . No. Down to 65, 65 is where i know. But you said you made a decision two years ago to get out of the business. Mainly because i felt like oil prices were too high, they would drop. We were able to sell the Oil Production over the last two years over 700 million of properties over 100,000 a flow oil which is a premium price. Its fascinating. Im thinking, as well, about, you know, the moves that harold hamm made at continental to not be hedged. You said its because you hedged benefiting. What did you think about his move . Im sorry . What do i think of what. The move of harold hamm at continental to take off the hedges and going all in and betting frankly the oil price will go higher . Its a huge bet and, you know, i think we all recognize that crude oil is needed throughout the world. The economies, though, in china and india and europe, theyre still not doing what they were three, four years ago. The United States is an anomaly looking at the rest oflts world and thats because we have such cheap energy prices. This industry bailed out the economy bringing all the natural gas, bringing the crude oil, thats allowing us to have the Industries Come back to the u. S. And thrive. Its our business is a bet. Were betting drilling wells and prices. You can hedge the bets by taking hedging risk and going unhedged and Certain Companies have different opinions regarding this. Youre diplomatic about that. Lets talk a moment about natural gas because to some degree its had the same story line that shales having right now. A lot of promise and so much supply out there that the prices were depressed. Theyve starting to move higher now. Do you think thats for real and where are they going . Natural gas for the next 12 months is totally dependent upon weather and so when you give us a cold winter, we have high natural gas prices. Mild winter it is low. However, long term, which is what i have to do when im building this company with my Management Company is were bullish on natural gas long term. When you look at all the huge industries coming back, in beaumont and south louisiana, 1. 5 billion chemical plants and theyre confident to have a longterm supply of cheap natural gas. 4 a gas, which is where we are today, i locked in this morning 4 gas for calendar year 2015. Our rates of return of 4 gas 80 to 90 . We love 4 gas. Sounds like it. A final question and thinking about the impact and saw the housing boom and bust and did tremendous damage to the u. S. Economy. Are there any hidden risk, leverage, et cetera, gary, you see from the oil price boom and bust were not fully aware of yet here . Well, its going to take one thing about our industry, its very, very resilient and the more we drill, the more we understand the shale formations, our costs come down and i think thats a big fallacy that the middle Eastern Countries are making. If they think theyre going to drive this business out, they got another thing coming. We continue to drop our cost so we can live with lower costs and the industry is Getting Better with our technology and were able to drive our total finding costs down and the consumers can have a Lower Oil Price and lower gas price. Wow. Gary, we dont wish you ill but im hoping for a warm winter this year. Im sorry, buddy. Im sorry. Im hoping you all have got to use so much heat you cant stand it. Okay. Good to have you with us. Thank you. Thank you so much. Thank you. Gary evans. Fascinating stuff. 40 minutes to go. Dow off about 20 points. Art cashin reports its still early and pressure in terms of orders on the sell side here as we head into the close. I love this story. Amazons new echo device, has it fallen on deaf ears already . The voice activated speaker connects to the cloud, promises to be an inhome digital assistant. Sounds like siri . Thats why someone of our next guest calls it a dud already. What do you think . Our live poll is opening right now. Tell us if you would buy amazons echo. Go to cnbc. Com vote. Later, Warren Buffetts Berkshire Hathaway with numbers after the bell and dominic will deliver them when they hit the tape. Thats all straight ahead. Theyre still after me. Get to the terminal across town. Are all the green lights you . No. Its called grid iq. The 4 51 is leaving at 4 51. They cut the power. Itll fix itself. Powers back on. Quick thinking traffic lights and self correcting power grids make the world predictable. Thrillingly predictable. No question about that. But your erectile dysfunction that could be a question of blood flow. Cialis tadalafil for daily use helps you be Ready Anytime the moments right. You can be more confident in your ability to be ready. And the same cialis is the only daily ed tablet approved to treat ed and symptoms of bph, like needing to go frequently or urgently. Tell your doctor about all your medical conditions and medicines, and ask if your heart is healthy enough for sex. Do not take cialis if you take nitrates for chest pain, as it may cause an unsafe drop in blood pressure. Do not drink alcohol in excess. Side effects may include headache, upset stomach, delayed backache or muscle ache. To avoid long term injury, get medical help right away for an erection lasting more than four hours. 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Humana falling after the Health Insurer posted weaker than expect expected. General mills moving lower after cutting sales and Profit Growth forecast and down by nearly 4 . Intercept pharmaceuticals on safety issues and posted a wider than expected Third Quarter loss and down by 30 . And well send with salix pharmaceutic pharmaceuticals, tumbling. Its cfo resigned and as a result those shares down by 46 . Bill, kelly, on the days session. Back over to you guys. Thank you. Move over siri, theres a new personal assistant in town and a surprise move, amazon revealing echo. You can only get it if amazon invites as you a to get it. 199 or 99 for prime members to answer your questions, tell you the forecast, add item to the shopping list. I dont get that invited to be bought. Well talk about that but whatever thats about. While some have been intrigued, one of the next guests had this to say. Oh yeah. Amazon echo in the house. He joins us now with the thoughts of tom hazelton and lance ulanoff. We want to hear from you folks at home or wherever youre watching us. Would you buy the amazon echo, assuming you got the invitation, of course. Go to cnbc. Com vote. Todd, why arent you impressed . My joke yesterday fills it in a little bit. Its like we have already. We have siri, google now, we have microsoft. All the things allow you to say, hey, set my alarm clock. Whats the weather . Whens the score of this game . You can play music and do stuff like that. I feel like its a delivery mechanism into Amazon Services and sort of is and just right now it lets you save products to a list that you can buy later. Maybe if it allowed you to say buy products directly today and i feel like this is stuff we have. Lance . A sneak attack. Its amazons plan. Getting a device in the house youre talking to all the time thats not only talking to you but listening to you. If you have to say its name, i dont know if thats the name of the Voice Assistant to engage but its in the house and one step away from saying, i need more milk. Or i need a new book. Or i want to watch that movie now. Making purchases directly through it, i mean would you buy one of these . Yeah. Well, first of all, i happen to be a prime member because thats a good deal. So if i could get one, i put my name on the list. I dont love the idea of being invited to buy anything. What is that . You have to be only like i think its you have to be invited to gmail, invited to google glass. How excited and desperate were you do get gmail . Very. How desperate for people to get google glass . No, no, no. Its way different to that. Its scarity. It might be a flop and see the demand ahead of time. Thats the bet. It is a good way to feel out whether theres a market like this. Well, it is like a it does feel like a beta test with the exception of we dont know if they put them out anywhere so its really kind of an odd thing to do. Going back on fire phone, 99 certain they have to do another edition next year. They dont give up. Good point. So you say you put your name on the list. I already did. Im waiting. What do you have to do to get inside the ropes then . What are the qualities . Call jeff and you beg. Right. No. Its just put your email in there and then it says, okay. You know . Well, you know, it was like very quick. I think i signed in to my prime account. And then it said, okay, and that was it. That was really kind of all i know at this point. I do feel like its a very strange way to go. I agree. I dont think we should underestimate what amazon is doing here. Todd smartly listed all of those Voice Assistants and amazon was left out and considered one of the big movers and shakers. It always wants to be on all screens and buy things to act. Todd, we all know and apple has been clear on this and google and everybody with the nest purchase and the next battlefield is the house and amazon, a move to get right in the middle of this. This could be the Center Console for a smart home. I think what lance was just saying, keeping screens connected is more important and i think fire tv should be the hub which it looks like apple tv might be, as well. Dont forget exceeding demand here. Alexus sneak attack to be on every amazon device. You will be talking and interact with every one of the devices in the same way, a comprehensive circle of ecommerce which, of course, is what amazon is always about. Todd, we want the know the second you buy one, todd, because i have a feeling i already bought one. Absolutely. Come on. Well see if youre invited first. I posted a picture of it. Well close the poll any second now on our viewer vote. There we are. Im thinking jeff bezos wont like this results. I dont see the demand either. 55 of the viewers say they would not buy. 45 said yes for something with no marketing, no big presentation with the headset. Isnt that a market . Thats like yeah. Really good sales. Ill take 45 of the whole population buying my anything. Because thats whos watching. I assume thats whats happening. Jeff bezos wants a much, much higher number on the yes count. Thank you. See if i put my name on that list. Have a great weekend, todd and lance. 30 minutes to go here. Market hasnt moved much. Down about 20 points. Again, we were a negative for most of the morning and turned positive this afternoon. A combination of everything from geo politics and even, yes, the news of the Supreme Court could be considering the subsidies in obamacare and put the space you should pressure and talking about that as mentioned the dow off 20 point this is hour. Jobs. Growing payrolls declining unemployment. So why are Americans Still anxious about this economy . The pros talk jobs and the economy when we come back. Chuck todd here to discuss his book of the Obama White House and what happened at the Obama White House today when mcconnell and boehner stopped by for lunch. Thats next hour. Well be right back. 24 7 its just im a little reluctant to try new things. Whats wrong with trying new things . Feel that in your muscles . Yeah. I do. Try a new way to bank, where no branches equals great rates. How couin jellyfish, protein impact Life Expectancy in the u. S. , real estate in hong kong, and the optics industry in germany . 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. So ally bank really has no hidden fethats right. Accounts . Its just that im worried about you know hidden things. Ok, whys that . No hidden fees, from the bank where no branches equals great rates. Well, todays jobs report shows creation continuing. Quality of the jobs and wage growth is issues for many americans. Joining us, matthew slaughter, former member of the president s council of economic advisers and professor at dartmouth. Also, with us, friend dennis gartman. Matt, i mean, its been called the goldilocks report today. Yes . Yes. It was a very strong jobs report on a lot of fronts. Good job creation, Unemployment Rate ticking down. Participation ticking up. On many measures it was good. The question mark is why isnt there wage growth . I think that speaks to the need for broader policy reform in washington. Dennis, youre throwing in the towel . Are you going long all in on the market . Seems to be a bull market an going to the sidelines its absolutely the wrong thing to do. You and everybody, by the way. It seems like the pros are the ones not doing well in the market and seems like the public that sits tight and just allows Monetary Policy to carry share Prices Higher to do quite well. Concerning the employment numbers, i think we need to Pay Attention to canada, also. Because the numbers that came out of canada shockingly good. The world expecting canada to show minus numbers, maybe 5,000 to 7,000 jobs lost and given the fact that canadas population is one tenth of ours is equivalent of losing 60,000 or 70,000 and instead the numbers up 43,000. The equivalent of adding 430,000 nonfarm payrolls and the job market is quite good across north america and surprisingly so. Matt, what needs to be done . You said the policy needs to do something about wage growth. What would that be . Great question. So, you know, the fed has done a terrific job with qe i think in supporting recovery in the broad labor market but the fed cant determine the quality of jobs that get created. That has more to do with congress and the white house do with the range of policies on things like tax reform, immigration policy, fixing our infrastructure, trade liber liberalization with the rest of the world and will shape Going Forward the kinds of jobs our companies in america creating and hopefully having high and rising wages. Those are the policy things we need to focus on more now. And to flip it, you can, back to the market, as well, dennis, as you know, the gains are often made all the way up until the point at which the full recovery is kind of upon us. So perhaps this report further evidence that theres still time to get in and involve. Uchb right on the dollar and talking about oil and to be clear to everybody out there, would you recommend that for now coming to the u. S. Stock market that they get involved . They should be involved. Should they get dramatically involved . If you havent been involved probably getting dramatically involved at this point might not be the best of all worlds and should you be involved . Absolutely. Be involved with the things to understand, steel and copper and aluminum. The basic things that are incumbent in normal Economic Growth around the world. So, yes, people should be involved. Still a bull market. And its the smart guys, the pros, who keep trying to call tops and trying to do it, it makes us look sillier and sillier. Its a bull market. It will continue to be a bull market. Mark this down. It continues to be a bull market until it stops. Words we can live by if not necessarily invest by. Absolutely. And dennis, did you hear the words of gary evans earlier this hour . Fascinating stuff. That was a very, very good interview and people do not understand how good we are becoming, how sophisticated it is our drilling techniques, how much were driving drilling costs down on a consistent basis. That was a very telling interview. And i think people should go back to the net and draw it up and listen to that. That was one of the best interviews i have heard in a long period of time. Garys a gunslinger. Drilling or using the fracking process right now. Matt, before we let you go, as well, a handful of states passed a minimum wage increase. There is a movement to try to get a federal minimum wage. Thats not likely in the near term but there are there is obviously a desire for a higher minimum wage in many parts of the country. What impact does that have on wage growth and on the jobs market out there . So that desire is really understandable, bill, and doesnt speak to the breadth of concern of the quality of jobs and looking at the exit polls on tuesday, a National Survey said how do you feel about the economy . 1 of americans said excellent. And again, that speaks to the need for throughout the skills and kind of income levels in the u. S. For Higher Quality jobs to be created and minimum wage might help some workers and what matters more is Energy Revolution and support of innovations going on and the other things so companies throughout all industries feel more empowered to create the Higher Quality, higher paying jobs. Great stuff, guys. Thank you both. Matt and dennis, have a great weekend, everybody. Thanks. All right. 18 minutes left in the trading session. Here the dow down 12 points. Holding steady here. Going out quietly after what i think is pretty good week for the markets and certainly much less volatility. Right . That interview with gary evans will be up on c dnbcnbc. C shortly. Berkshire hathaway, building this country and build Economic Growth. Indeed. Later, hey, remember radioshacks super bowl commercial with nearly hasbeen star from the 80s . They forgot one person. Watch. Toy land toy land yep. Weird al promoting radioshack for the holidays l. The new ads save the retailer from going dark . 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If youre a current or former military member or their family, get an Auto Insurance quote and see why 92 of our members plan to stay for life. Warren Buffetts Berkshire hathaway posting after the bell. Well expect to see at least Analysts Expect to see an earnings number of 2,594 a share. Of course, we say that on sales of 51 billion in the Third Quarter, a company with a very, very high share price and the biggest segments insurance, rails and energy industries. Railroads could benefit of what appears to be improving economy. Now, there were no significant catastrophic claims and could focus on how well the energy units fared in the face of oil prices. Over three months, the stock risen about 10 you can see here and those shares very much flat, bill, kelly, after the bell today. Back over to you guys. Thanks, dom. Looking forward to it. See you later. The dow turned positive. And hey what . Art cashin saying 300 million to buy on the close, bill. There you go. Buying the dow stocks apparently as we head toward the close and whats been a pretty good trading week. And later chuck todd on the midterm shakeup. What can we read from the lunch at the white house . Well ask him about all of that just ahead. Stay tuned. Ten minutes left in the trading session. The dow up and minus signs for the s p and the nasdaq as we go out. Larry mcdonald with me from new edge usa and independent Investment Consultant david darst. Happy friday to both of you. Happy friday and happy veterans day to the men and women who served next tuesday. Absolutely. Get the flags out. Larry, what stood out to you this week . Election, collapse of jobs numbers, other things. Ecb meetings. What stood out for you this week for the markets . Above all, bill, the twoyear yield coming down as much as it did today in reaction to the jobs. Look at this and the jobs number, average Hourly Earnings flat up on the month. You want to see the curve steepen if the jobs market is really had some strength behind it. Its flattening and 2year is not buying the jobs number. Still forecasting a Slower Growth economy. What about you, david . What stood out for me was the poll, the American Association of individual investors poll, bill, thats taken every week. Taken on the 5th. Every wednesday. November 5th. And it shows 55 bulls and dlsh 52 bulls and 15 bears. Thats the same as it was early january when it was 5519 as you recall and led to the big decline in january of 3. 5 which is the biggest decline month that we have had this year. That having been said, the basically want to see retail sales kick in here for the holiday season. Theyve been lackluster. Next friday well get a retail sales number for the month of september so you want to see how that is unfolding. The jobs numbers were good. The manufacturing is good. The monetary stimulus is in place. So far so good. But china, europe, retail sales. Right. Valuations are stretched, bill. Finally, that over excessive bullishness on investors. That is often seen as a contrary indicator with too many bulls and already in the market and run out of buyers of some point. Larry, energy. We talked a lot about the decline. We heard from one of the guys who was up in and leading the Shale Oil Industry. Do you think prices are going much lower . Would you buy energy as a contrary play here . Why would you do . In the entire energy space, bill, the best buy is coal. The coal names have made a 10 to 16 bounce. If you look at btu. A bounce over the last two weeks. Right. Especially especially after the election, exactly. Yeah, exactly. I think thats a catalyst for the next couple of months. Really cheap space. I think they run for the next six months. I think that the republicans will undo a lot of damage of the epa created. Also the energy space, bill, look at the oil price. If it breaks device live below 75 to 70 range, further below that, then its look out below. People are comparing the period to the 1986 period with the big decline in energy prices. That having been said, it was a great article in this mornings wall street journal of exxonmobil and hasnt done much this year and nice yield and they have alito way from exploration and production to the refining and mining and makes money with weak prices like this. The name ibm stuck in my home of an Investment Conference this morning and talking about whats wrong with ibm. Larry, only just the strong dollar thats hurting this company right now or what are you doing with the beleaguered dow component . Yeah. Think of like the global gdp. Right now europe, china and japan have 31 trillion of global gdp versus 16 trillion in the United States. Thats a big number so if that part of the world is slowing down, in the old days it didnt matter because the u. S. Was 55 of global gdp. Today we are at, say, around 23 . So Companies Like ibm, industrials, theyre a victim of the strong dollar in this market and the weakness in china and europe. Yeah. Indeed. Bill, ibm, 430,000 employees. 100 billion in revenues. 160 billion market cap. You can contrast it with facebook. Facebook is 200 billion market cap. It has 8,000 employees. And a billion in sales. So, one of those two numbers is wrong. Ibm down 14 for the year. Facebook is up 36 for the year. Somethings out of whack. Something is out of whack. I got you. Thank you, david. Larry, good to see you. Thank you. New. Well have the closing countdown for the friday. The dow up 5 right now. After the bell, as we said, radioshack with weird al. In their new holiday ads and well discuss if theyre the swan song for the retailer or its savior. Youre watching cnbc, first in business worldwide. Theyre still after me. Get to the terminal across town. Are all the green lights you . No. Its called grid iq. 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Tdd 18003452550 open a schwab account and you could earn tdd 18003452550 300 commissionfree online trades. Tdd 18003452550 tdd 18003452550 call 18777292379. Tdd 18003452550 or visit schwab. Com trading. Tdd 18003452550 schwab trading services. Tdd 18003452550 your goto for trading knowhow. Tdd 18003452550 tdd 18003452550 your goto for trading knowhow. Twhat do i do . You need to catch the 4 10 huh . The Equipment Tracking system will get you to the loading dock. There should be a truck leaving now. I got it. Now jump off the bridge. What . In 3. 2. 1. Are you kidding me . Go. Right on time. Right now, over 20,000 trains are running reliably. We call that predictable. Thrillingly predictable. Last 90 seconds. See what the dow did this week. Little bit of volatility. Oil had something to do with that. Finishing at least at this point of gain of 5 points here. And i guess thats the weekly chart over the shoulder there that were looking at for the week. Oil, this was the week that we saw big move lower and 78. 54 the low for the week. 75. 84 and since came back. Bob . We did have a bond market rally today on the non farm payro payrolls. We did move down in yields. Up in price on yields. Still the flattening of the curve as larry was pointing out. I think thats right. I think the important thing here today is remember, you might say we didnt move much. Alltime highs on the market and takes an exceptional bit of news to start moving the market. As i said before, things are not cheap now. Most everything is sort of on the high end of the value range and particularly when we see moves up in companies of big banks and in the last 5 , 6 moves, doubledigit moves in some consumer stocks, it is going to be real Headline News to move the market now. Thanks, bob. Have a great weekend, everybody else, as well. Heres the second hour with kelly evans and company. Thank you, by. Welcome to the closing bell, everybody. Im kelly evans. This is a winning week on wall street. Dow jones industrial average adding about 16 points. Here as the bell rings. S p 500 even turning slightly positive on the close. I believe that means for both the dow and the s p here probably at new record highs. Indeed. Thats the case. D on the back of the jobs report this morning. Midterm elections on tuesday. The nasdaq down about 6 points for its part. With our panel this afternoon, zachary carabel is here. Along with our own Steve Liesman on the panel and fast money trader tim seymour. Welcome one and all. And the first question, you know, the pressing topic of the day is are we heading towards another russia default crisis . Weve been talking about oil and energy in this country. Is this the sleeper story of the year . We have two people here with more firsthand experience in this country than perhaps anybody else to have on the panel. Im going to weigh in on a positive side. By the way, theres three guys, timmys got the russian experience, evan does. We could do most of this show in russian if you like. Da. That doesnt count, zach. Youre out. Okay. Listen. Im going to talk hopeful here. It was the drop of oil in the 90s that prompted russian reforms. When they ran out of money. Now, ultimately, created a crisis. That was a problem but russia will not reform while putins coffers are full of oil revenue. A drop in the price of oil could be a hopeful sign at least medium to longer term for russia. Meantime before things they need a 70 price of oil to meet the budget. Even higher than that some people say. Tim . Giving it to tim . Go ahead. Kelly, it is very interesting. Takes a sustained period for the price of oil to be down low. You know, putin is still marching around russia or parts of the crimea he is annexed and basically has an 80 to 90 Popular Support ratding and nobody loses power when they have 80 to 90 of the population behind them and takes a sustained period but you never know. You know, i was a student back in moscow at the height of the cold war in 1984 and if you told me in 1984 by 1990 or 91, the berlin wall will be down. I would have said, no way. Very unpredictable. Tim seymour is with us now, too. Tim, what do you think about the risks here to emerging markets, russia included and as the u. S. Story is better and better on the back of the strong dollar, better momentum on the jobs report this morning . Where are the risks now . Rush whys a risk to itself and if you look at where Russian Central Bank reserves are, this is what you were talking about. Looking at 99, there was 13 billion of Central Bank Reserves at best and now 450 billion. So russia can survive here but emerging markets as an asset class perversely as the world talked about more liquidity this week with the bank of japan and the ecb, emerging markets sold off. Thises a dollar rally, largely this week and not entirely built off of the weakness of the yen and the euro. Timmy . Yes . I have a question which is interesting. Youre right. Theyre claiming the 450, a billion of reserves. But notice that the central bank said not too long ago that theyre not going to back it anymore, they wont support the ruble and made me wonder do they have the 450 . Hang on for a second. Well break in with Corporate News and get back to this in a second. At t, dominic chu, whens going on . At t is going to acquire a mexican wireless provider of iusacell with debt. At t will acquire for that price all of the Wireless Properties and approximately 8. 6 million subscribers in mexico. It will occur after grouposalinas closing a deal. The headline here, at t is going do get into the mexican wireless market by buying iusacell in mexico 2. 5 billion with debt and say along the lines with regard to the wireless context that it is serving 8. 6 million subscribers and its in the early stages, mexico is, of mobile internet adoption. Its an opportunity to bring world class mobile internet speeds and quality to mexico and create the firstever north America Service area of mexican and u. S. Consumers and businesses. Back over to you guys. Dom, thank you very much. At t sharyls looks like that i cant tell after hours or not but slight upward bias there. Up by about. 2 . Zachary, we go back to at ts results here and remember sprints, as well. Not a lot of growth left in the u. S. And looking to mexico. Yeah. I mean, obviously some growth left in the u. S. With next Generation Networks and probably plays into Tower Companies and other things. I actually think the mexico story is more interesting to methane the russia story. We fixate on russia and less on mexico and last i checked was part of nafta. The actually reforming government. Southern texas. So, you know, right. Tim . Well, i agree with zach in that, look, mexico is actually making major progress on reform. Carlos slim is probably the loser here and the attacks on telmex and opening up of the industry. I think the whole emerging market thematic play theyre leapfrogging tech nonology and s very positive news for at t and i think you have to thats where you look for growth in the emerging world. The reason em is failing is because theyre playing macro em. You cant just buy the index. Thats the best way to do it. I sent a note to michelle and dom to find out if the story is linked to the deregulation thats going on in mexico. Right. That makes mexico a really interesting story. In fact, related to the russia story because its the opposite of the russia story. Correct. Theyre closed off, had great promise. Didnt come true. Mexicos a place opening up in the oil business and i think this is related to deregulation in the telecom business. A business that may fously made carlos slim the worlds biggest billionaire. Look. I think the interesting thing about russia is not that rush whys a messy place and the price of oil is down. A lot of excitement here. Thats all for you. Applauding for you. I think the real story around russia is the unpredictability and thats the real thing. I think Going Forward over the next couple of months we can talk about the u. S. Economy, kind of churning. Talk about the jobs number churning out numbers and unpredictability. What happens with iran and russia . Those are the things to drive probably the stock market towards the end of the year. Not so much around no, no. Driving it if theyre a risk factor. Youre totally right. Russia belongs in the camp of things to go wrong and clearly on a path not tenable. Yes, if theres a huge oil supply shock, i dont know where that comes from. Also commodities which are the price falling apart. Hurts russia. Mexico and reform. Whens brazil do in the new government of doma . What does india do under modi . It drives market performance. Russia as you just said is a risk factor. I think really important to distinguish between them. Tim . Ive said this plenty of times. When you make money is terrible to bad. You doend need a major change in russia to make a lot of money as an investor. A lot of caveats. Vrl risky. Look at the Russian Oil Companies making a lot of money right now as the dollar exporters and cost base is in rubles. Be selective. Not two feet into russia. Im saying right now with the dollar, the dollar now i think is a week past bank of japan and europe and people thought it was going to be hawkish. I think you can buy risk assets into next week. I think emerging hey, tim . Steve . We have a crack team at cnbc. Im talking, Jonathan Fortt our crack tech writer is writing to me. Its a direct result of the reforms put in place by president pena to encourage more competiti competition and investment in mexico. Growth population and growing middle class make mexico attractive place to invest. Didnt we just say that . Thats interesting here. Thats what we just said. This is at t seeking out growth where they can get it and Carlos Slim Owned the market and made it a noncompetitive market and now pushed out of the way. Steve got to look really, really wise reading that with the glasses on. You know what theyre . 2. 99 from cvs and only ones to hold on to. Theres deflation. We need you to buy did 500 from lenscraft earls. I lose them. Thank you so much for being here this afternoon, tim. It was a long night for everybody. Stick around and catch tim at 5 00 p. M. Theyre talking twitters ipo anniversary. We havent talked about that yet with the one analyst with a sell rating on the stock. Dont miss that. Coming up mere, what was the most important number in the jo jobs report . A closer look next. A judge with good news to detroit and bad news to some of the Public Workers. Well be live with the attorney who argued and won the case for the city right here on the closing bell. Keep it right here. You are watching cnbc, first in business worldwide. Big day . Ah, the usual. Moved some new cars. Hauled a bunch of steel. Kept the supermarket shelves stocked. Made sure everyone got their latest gadgets. Whats up for the next shift . Ah, nothing much. Just keeping the lights on. laugh nice. Doing the big things that move an economy. See you tomorrow, mac. See you tomorrow, sam. Just another day at norfolk southern. In case you missed it this morning Steve Liesman sat down with cleveland fed president in a rare interview. Heres some of her reaction to todays jobs report. Pretty solid jobs report across the board. As you know, i like to look at trends in the data and the trend has been up for quite a while. I think the payroll jobs i think are a strong indicator that the labor markets are improving. Still room to do better. Right . Still people without jobs that want jobs and so well continue on hopefully with the economy improving along those dimensions. For her reaction for reaction to her comments and to that jobs report, bring in indeed. Coms chief economist Tara Sinclair and greg gibb with the panel and including steve today and welcome, everybody. I guess the first question, tara, for you here is to what extent theres work to be done and by the way this point about how many of these jobs being created today are lower quality than the ones that went away many years ago. Well, i think theres still a lot of room for improvement today. Today was good news and were still looking forward to seeing more and more high quality jobs created and something to look forward to in the months ahead and we are seeing a greater diversity of job postings and the industries hiring last month. Thats a good sign. Greg, i mean, are we there . Are we there at that point of kind of liftoff almost . We i think we have passed that point of liftoff. I think the relevant question is are we practically at almost full normal element . The trend is impressive. The number today was slightly below estimates, it is the ninth straight month over 200,000. Averaging 228,000 a month and up from last month and here we are in the sixth or fifth year of expansion and things are accelerated. Jeremy stein said dont just look at the flow of news but the stock of news and the cumulation of strong reports tell you something. We are on the verge of being at full employment. Ill push back strongly here and i think we might be like in the third inning of the jobs expansion. Wow. And the key to this is wages. Let me just point out the lack of Wage Inflation and lack of overall Price Inflation is not just incidental to the criticism of the fed behind the curve. It is the most important and salient fact. If this economy were on the verge of full employment, if the fed well behind the curve, there would be inflation. It tell you that policy is ripe for now. Not only that but early days. We first put people back to work. We soak up the slack, early earnings in that and then we get people wage increases and hikes. I did not say the fed is behind the curve. Not is same thing. Well, they go together, greg. One of the reasons we have seen soft wage growth is even seen even softer prices. 1. 5 inflation. 2 wages, not great but it is a real wage gain of 0. 5 and if you look at the productivity numbers, theyre very weak. In fact, you are starting to see wages consistent with the kind of poor performance were having. Although the interesting question is we could be back at full employment within a year with inflation settling at a level below the feds target raising an interesting question. Interesting to hear from tara, i mean, we are not getting if were getting Higher Quality jobs not necessarily getting Higher Quality jobs paying substantially more and a massive disconnect of the commentary were having right now about a great jobs report which it is statistically and, you know, Voter Sentiment on tuesday about 78 of americans saying the country on the wrong track. Even if you took it away from tuesday and did just the general population, 44 still think were in recession. So i mean, tara, are we seeing better jobs that are proliferating or marginal proliferation of slightly better jobs . We are seeing better jobs out there but it is coming on slowly. So i think thats part of the reason why people respond the way they are with the slow improvement in the economy, it is hard to notice it. And people would like to see a bigger, more dramatic recovery after a big dramatic recession so many years now. I think if you look at what bond market is saying, the bond market is basically saying that steve is right. I mean, i dont think hes right but thats what the bond market is saying right now. Its true. Lower after the jobs report this morning. Most interesting thing is that both greg and steve seem to be basically saying its the end of inflation. You know, theyre talking about some world Going Forward for the foreseei foreseeable future where inflation does not rear its head. The fed says were very close to where we want to be on the employment goal and not where we want to be on the inflation goal and that is conducive to a scenario where they keep policy exceptionally easy, well past the point of unemployment down to 5. 5 because theyre not going to settle for inflation stuck at 1. 5 or nominal wages at 2 . That means, yes, probably tart to tighten in the middle of next year as we expect and a slow trajectory. I do think that the bond market is carried away with it. I dont know why they rallied today off the number and broadly correct that were not going back to a 4 , 5 federal funds rate. Last thing. I want to point out the important debate which is to people who are not in the workforce, unemployed, longterm unemployed with downward pressure on the wages. A pool of labor slack to come back into the economy that ultimately should animate fed policy right now . I think todays reports a victory for yellen. 400,000 people coming back into the workforce. I understand these are volatile data. Coming back into the workforce at only 2 year over year wage gains. Tells me steve, steve, steve, i got to make a quick point here. Youre putting way too much emphasis on a Household Survey its all weve got. By the way, the earnings numbers the Participation Rate barely moved out of the range. Thats better than it going down and do not get excited about that number. Im excited about it. Whats the labor market right now, tara . Seeing the most wage pressure, the biggest shortage of labor. Well, biggest shortage of labor continues to be in health care. I think even though were seeing job gains there, theres still a lot of demand for health care out there. Unfortunately, a lot of thats lower paid. I was expecting it to be i. T. Another ten minutes to debate whether the fed has a role in changing the Wage Structure of health care workers. The whole dual mandate i think we have to save that for next time. Thanks to tara and greg so much for being here this afternoon. Really appreciate it. Your company is fighting for a survival. Who do you call to help save it . If youre radioshack apparently parody weird al to drum up christmas sales in a new commercial. First in the new song, detroit made bob seguer is toasting the motor city. Well head to michigan where detroit is celebrating the emergence of bankruptcy after a judges ruling. Whens ahead for motown and the muni market, next. We asked people a question how much money do you think youll need when you retire . Then we gave each person a ribbon to show how many years that amount might last. I was trying to like, pull it a little further got me to 70 years old im going to have to rethink this thing its hard to imagine how much well need for a retirement that could last 30 years or more. So maybe we need to approach things differently, if we want to be ready for a longer retirement. Welcome back. Another chapter closed in the detroit bankruptcy filing. The judge approving the citys plan. The Public Workers fighting hard against. Scott cohn with the details now. Hi, scott. Reporter kelly, the bankruptcy judge said that in approving the citys exit from bankruptcy nows the time to restore democracy to the people of the city of the detroit and elected officials here were quick to pick it back up. News conference just wrapping up with detroit mayor and michigan Governor Rick Snyder who orchestrated what remains a deeply controversial bankruptcy plan here. Heres governor snyder. If you go back to july of last year, people had many different concerns and very few people believed we could see a successful conclusion that alone a conclusion in this time frame. Its here today. Reporter and whens here today is a plan that could get detroit on solid financial footing for the first time in decades. Were talking for city improvements, restoring services and new development here downtown. And perhaps most crucial of all, a plan that shores up the citys pension plan with only modest cuts and keeps the Art Collection so prized by detroiters at the Detroit Institute of arts and creditors wanted it sold out and rescued. Judge rhodes said that the settlement borders on the miraculous and that may be an understatement. Kelly . All right. Scott, thank you very much. Theres more details on cnbc. Com. With us now is the lead attorney for the city of detroit, david hyman and joining the information is david chrysburg not pleased with todays outcome. Steve, most of the coverage of this has applauded the speed at which its moved, the fact its come to a resolution, that it is a new beginning now for detroit on better footing as you just heard our reporter put it. So whats your main concern about the damage done here . Well, first of all, we support the plan of adjustment and pleased with the rulings and approval of the plan. We negotiated with mr. Hyman from the city. So, i think from our perspective this might have been the best outcome under the circumstances that existed in detroit going into the bankruptcy. But any time you get into a situation where workers Retirement Security put in jeopardy, people that earned money had it taken out of the pockets, its a troubling situation. Moving forward, were hoping for Greater Economic Development in the city and we think the end of the bankruptcy is the beginning of that process. David, you have worked on bankruptcies across the private sector now, of course, this extremely high profile one in the municipal space. Do you think it puts an end to the spate of bankruptcies some extent triggered by the financial crisis in this country . Really, i would doubt that. Detroit was the first and the most extreme situation facing American Cities but the thing that has most challenged cities across the country, in fact, is the retiree legacy costs and the fact that those costs have actually gotten just too large to handle. Its a great point, david. How so how much did the worker vs to give up in this case to get this settled in detroit, and what example or precedent is that setting for everybody else . Okay. Let me first say hello to steve who i was opposite for many months. He and i established a great relationship and he was very instrumental as far as im concerned in helping us get through the difficult case. So, i think it needs to be explained that, in fact, pensioners in the city of detroit now will be receiving on the safety side 100 of their current benefits. They will also get some but less than they were entitled to cost of living increases. On the general retiree side, theyll get all but their benefits and no cost of living. Okay. When we started this case, you know, 16 months ago, no one on our side at least and im not sure anyone on the labor side could have predicted this kind of result. And thats a very important fact here. I have a question for steve. In that regards many see as a i dont know, impending pensions crisis among the pensions out there, especially those for state and local and city workers across the United States and thats because many people and i dont know about the people on the panel dont believe that the current projected rates of the pensions of 7. 5 to 8 to 9 are achievable. Whats labor going to do when it turns out that the funds only pay out 3 to 4 . Well, i think the assumption behind the question is completely inaccurate. Theres no pension fund of any magnitude with a 9 assumed rates of concern. Currently 7 . Yeah. Thats outsized relative to whens realistic. Well, you can say that but theres no facts to back up your statement. If you look at the average pension return, the median pension return over ten years its over 7 . If you go back 20 , over 8 . 25 years, closer to 9 . You can make an assertion of rates of return. Lets put it this way. If you use facts steve, heres all im sayinger f. Equities, the return over 10year period is 4 and the way do get to that 7 is by investing oftentimes and products like real estate, hedge funds, private equity. The kinds of investments that then cause asset boom and bust cycles in this country and dont necessarily get to the idea of the idea of 7 long term is tenab tenable. Well, in fact, its been achievable in ten years and the ten years you cite and 15 years if you want the use that time frame. For 20 years, well go 20 years. So again, if youre going to make assertion, lets be accurate about it. Theyve been achieved. Going forward, if we want to argue that our economy is not going to produce those kinds of year over year increases, thats a good discussion to have. And its absolutely. Speculative and recognize its speculative. We do need to create an economy that works for workers. We need an economy with higher growth rates. We had a jobs report today. Its very encouraging. But we all know theres way too much slack in the labor markets so we need to pick up that slack, we need to have income gains. Workers need to share in the gains. We also need capital to grow, capital is growing. We have record profits. Steve, and david on this, having been involved in detroit, detroit becomes this kind of laboratory of can you, in fact, do what steve, you just said we need to do which is create an Economic System with a certain level of dynamism and detroit for the man fold and manifest problems provides a laboratory. I mean that in the best sense of the word and not human beings are but to be created. Do you see that potential as we emerge out of this bankruptcy or as detroit emerges for creating that in detroit . Last word, steve . May i just say the potential is there but i think what detroit really needs more than anything else is Economic Activity. Solving the budget problem of the city is a necessary but not sufficient condition for detroit to be successful and i think what we have to adresds is going to have an Economic Activity within the city of detroit. David . Steve and i have had this debate for over a year now and with Great Respect i think for each other and i can tell you detroits Pension Funds were billions and billions of dollars underwater. There are many reasons for that but one of the reasons, in fact, in our mind, in our view is the 7. 9 discount rate and many municipalities in america are suffering the same shortfall in their Pension Funds because they are projecting growth and discount rate that is are just not realistic so in detroit we actually were able to negotiate a reduced rate of 6. 75. Okay. Some people dont think thats enough but, you know, thats a huge step in our view and a huge accomplishment for the city of detroit and moving forward. It is the most important issue you could argue in this country today. Thank you for being here. People also hungry for the hung rer games. Find out what surprise announcement is running up on cnbc. Com next and radioshack with a Million Dollars for an ad in february. Remember . Now the retailer going back to the well the try to boost the fortunes this time with a new song of parody king weird al. Well show you the ad coming up. receptionist gunderman group. Gunderman group is growing. Getting in a groove. Growth is gratifying. Goal is to grow. Gotta get greater growth. I just talked to ups. They got expert advise, special discounts, new technologies. Like smart pick ups. Theyll only show up when you print a label and its automatic. We save time and money. Time . Money . Time and money. Awesome. Awesome awesome awesome awesome all awesome i love logistics. I research. I dig. And dig some trader more. Search. Because, for me, the challenge of the search. Is almost as exciting as the thrill of the find. announcer at scottrade, we share your passion for trading. Thats why we rebuilt scottrade elite from the ground up including a proprietary momentum indicator that makes researching sectors and Industries Even easier. Because at scottrade, our passion is to power yours. You know how fast you were going . About 55. Where you headed at such an appropriate speed . Across the country to enhance the nations most reliable 4g lte network. Hows it working for ya . Better than ever. Howd you do it . Added cell sites. Increased capacity. And your point is. So you can download music, games, and directions for the road when you need them. Whos this guy . Oh thats charlie. You ever put pepper spray on your burrito . I like it spicy but not like uggggh spicy. He always like this . You have no idea. At t. The nations most reliable 4g lte network. Welcome back. Talking about this earlier of natural gas prices. Apparently wenter is coming. Socalled polar vortex forecast for the area next week and cold weather stocks heating up the hot list today with allen at headquarters joining us now. Hey, kelly. Winter is coming. Just like the game of thrones and investing editor john malloy looking at the stocks likely to pop when the temperatures drop. Natural gas stocks are in there. He also pointed out generac. It might get a little recovery. Too few hurricanes. Cold to up the sales, huh . You know. He has a few others in there. Do it yourself type outfits. Number two on the hot list, the news that president obama sending more troops to iraq basically doubling the presence there. That story, the subject of the middle east, always big with our readers so that story is burning it up right now. Finally, because we tend a writeup of the q an of Mark Zuckerburg this time with his employees. The burning question people seem to be interested in why does he always wear a grey tshirt . Basically, he said, you know, hes into the philosophy making too many small decisions in a day it zaps the energy. So true, by the way. Look at carlos and not uncommon for ceos. Allen, you do this. Always in a black shirt. I the end to go that way and steve jobs went that way, too. You know . Maybe a little ruboff. Because of jobs or because of decision overload . When i get here in the morning, it is usually dark out and i cant see so this just makes it easy. Black, i dont have to worry about it. I have fall fishing to get in. I dont see that polar vortex coming for two weeks. Next week . End of next week, steve. End of next week. I got next week to get out and thats it . This weekend. Maybe we can meet up. Sounds good. Tie flies, my friend. Have a great weekend. Thank you. I can see you plotting as we sit here fie the weather turns, im done. I have to pull the boat. President Obama Meeting with republican congressional leaders today. How did that go . Well have an update with meet the press Moderator Chuck Todd with his take. Is weird al the answer for radioshack many taking a big bet on the satirical singer for the holidays. Were back in two. Are all the green lights you . No. Its called grid iq. The 4 51 is leaving at 4 51. They cut the power. Itll fix itself. Powers back on. Quick thinking traffic lights and self correcting power grids make the world predictable. Thrillingly predictable. Open port twentytwoohoneseven on the firewall for customer db access. Install version twopointthree of db connector and ensure verbose flag is set in case of problems. clapping sound isnt the cloud supposed to make business easier . Get the one that can connect to the systems that you already have. Today theres a new way to work. And its made with ibm. I take prilosec otc each morning for my frequent heartburn. Because it gives me. Zero heartburn prilosec otc. The number 1 doctorrecommended frequent heartburn medicine for 9 straight years. One pill each morning. 24 hours. Zero heartburn. Twhat do i do . You need to catch the 4 10 huh . The Equipment Tracking system will get you to the loading dock. There should be a truck leaving now. I got it. Now jump off the bridge. What . In 3. 2. 1. Are you kidding me . Go. Right on time. Right now, over 20,000 trains are running reliably. We call that predictable. Thrillingly predictable. So the president meeting with congressional Leadership Today after the elections. John harwood with the details on how it went down. John . Reporter busy day at the white house. The president met first with the cabinet while he was in the process of making that decision we heard about later to double the troop presence in iraq. But the important symbolic meeting of the day was his meeting with the congressional leadership in the wake of those elections and the president continued to put his spin on the results saying it wasnt a repudiation of the agenda. It was a demand by the American People for action. The American People just want to see work done. Here in washington. I think theyre frustrated by the gridlock. They would like to see more cooperation and i think all of us have the responsibility, me in particular, to try to make that happen. And so, this gives us a Good Opportunity to explore where we can make progress on behalf of the people who sent us here. Reporter now, the president reiterated in that meeting that he intends to move ahead unilaterally on the issue of immigration if congress doesnt act. Members of congress did not come to the microphone s afterwards. They didnt slam the president but kevin mccarthy, the House Majority leader made clear theyre not going to be happy if the president takes that step. We should have the wisdom to listen but the courage to lead and i think january should be an opportunity that we focus on that and not have a situation, why executive orders when you have legislative process . Reporter it looks like the die is cast on that and apart from progress on relatively small things like trade deals with europe and asia, perhaps infrastructure improvement, its going to be very difficult for the two sides in two years to come together on major legislation. Indeed, john. Thank you very much. John harwood for us this afternoon. Joining me now is meet the press Moderator Chuck Todd. His new book comes out this tuesday. Well get to that. But first, welcome, chuck. Great to have you. Theres plenty of speculation and whether the president and the congress can compromise, will get anything done. Whats your best guess at this point . Well, really, just depends on if each sides detonates the policy nuclear weapon. For the republicans, its about how much are they going to go after the Health Care Law . Obviously, with the white house, its about immigration. Right . Thats that is the ticket for both sides, frankly, the gum up the works. Both sides are having this sort of threatening aspect. The white house said if they want to chip away at the Health Care Law, we wont let it get in the way of doing other things. The republicans havent quite said that if the president decides to go it alone on some parts of the immigration law. So i think the question is, can that get set aside, if it can get set aside, you see how small things get done on trade, perhaps they start at least Corporate Tax reform, some things like that. You get the feeling that health care and immigration together in some form or another could end up making the other side just say, you know what in thats too much. Thats a bridge too far. Chuck, are you hearing about the Federal Reserve . The couple of points here on wall street focused on is what happens with richard shelby, does he go after the big banks more so . Two, does the Federal Reserve enter a renewed period of scrutiny and what happens with the two vacancies. The House Republicans have been tough on the fed and the audit the fed movement and all this stuff thats popular in some parts of the conservative base of the republican party. I wouldnt be surprised if you saw just an intense scrutiny on the fed in general coming from a republicanled banking committee. But lets see. I think the leadership is not as interested in that as individual members are. By the way, ill quote our Steve Liesman on this. How do you make sense of an electorate speaking of the economy, the financial system, that supports raising the minimum wage, legalizing pot and electing a sweep of republicans across the country . Look. I think its a reminder that, you know, look. Populist economics is popular and a cultural connection that the republicans have with sort of i think working class Rural America that maybe on economics they probably lean more to the left even though culturally they dont fit in, they dont feel like the democrats want to talk to them, they dont fit in with the Democratic Party and thats the disconnect is a populist economic proposals popular with Rural America like you brought up the min maum wage and culturally they connect more from the republican party. And by the way, youre speaking with Governor Scott walker. Is that right . This sunday. The lead guest. Won 3 out of the last 4 years had a hes faced the voters in wisconsin. I guess the question is, does he want to start a fourth come pain, one that would begin in iowa 2016. So assuming chuck, whats with the book . In the middle of basically taking over meet the press, having scrutiny and entering this position of having all these guests on and talking about the administration all the time, is there any problem as you see it with sort of doing both of these things at the same time . Well, look. Look. I think everybodys going to have a different perspective on the book. What i was writing about is washington, president obama and his battles with washington institutions and thats the thats the framework of this book. Its not a liberal book. Its not a conservative book. It is simply a reported book. Reporting and analytical about sort of the battles and the struggles that the president s had with washington institutions, whether its the pentagon, congress, congressional republicans, congressal democrats and even inside their own Democratic Party so thats what the book chronicles. We look forward to reading it. Tireless chuck todd, thank you for joining us this afternoon. You got it. Really appreciate it. Tune in this sunday. Chuck will be talking to recently reelected wisconsin governor got walker. Local listings have the show times there. Hes known for singing parodies of pop songs. Radioshack hired weird al to be its holiday sales savior. The struggling company putting weird al front and center in a new ad. Is it too little too late . Well be right back. Music. The getaway vehicle for all the confidence you need. Td ameritrade. You got this. Welcome back. We begin with our dominic chu here and some news on two Big Companies and potential ipo plans. Heres what weve got on the internet front. We are getting a report out of the Financial Times that uber, the san franciscobased carbased company, is in early talks with investors about possibly trying to raise a billion dollars in new capital. Of course this is about six months after it also raised about 1. 2 billion in another funding round. People familiar with the matter according to Financial Times say that the investors or the companys hoping to raise the money at a valuation of higher than the 17 billion that it got when it got its june funding series. So again, uber trying to raise about a billion dollars in new capital, at a valuation higher than 17 billion. Thats according to the f. T. Also according to the ipo story, momo has filed registration documents with the s. E. C. For a possible ipo here in the United States. Momo is a social dating application based in china. You can think of it like the tinder or the snapchat of china. This is a company thats got 25. 5 million daily users. That puts it about the same size as a zynga. Again, momo filing plans for a u. S. Ipo. The company has listed morning stanley, credit suisse, and jpmorgan among the underwriters for its ipo. Uber looking to raise a billion dollars. Momo, the tinder of china, if you will, looking to possibly ipo here in the United States, kelly. Back over to you. All right, dom, thank you. Now, heres what were going to do. Keep this in mind for a second. 17 billion for uber and then think about this. Radio shacks Stock Performance for the last few years, its not pretty. The company right now has a market cap of about 95 million. And as we mentioned, weird al yankovic is now involved in an expensive new ad campaign. So gentlemen of the panel, the question remains, to what extent, if we want to talk about valuation, uber commands 17 billion. Radio shack has a market cap of under 100 million. First of all, if you had said six years ago we would be having a conversation about uber, momo, and tinder the tinder of china. Zplu you would have really had a lot of question marks being raised. I am no idea where the money is coming from the ad spending because i always had the incredibly expensive and very well done Super Bowl Ad where it was radio shack, back to the 80s, want their shop back. Theyre clearly spending a lot of money on ads, but unless there is something that people actually want to buy in the stores is this money down the drain or is there a point in doing it . Not only is it potentially money down the drain im curious about where the money is literally coming from. Well, its probably coming from the fed. The reality is that how much is it worth . I dont know. Can you imagine radio shack actually being here ten years from now . A bit like sears. A bit like these old retail stories. I dont see why not. Theres a perfectly good niche for radio shack. If youre a geek like me and you need to find a single quarter inch male that goes down to two female rca plugs and you want a bluetooth connection for your stereo. I went in the other day, i spent 37. I do it online and i dont have to leave my desk. Thats the problem, that people order that stuff on amazon. Of course. You dont need an rca wire connector ahead of time. You need it right there and now. And you may be entirely right but radio shacks current strategy is moving away from that. Thats right. Higherend and thats what it should be. Youre going to go there and get your copper wire they should get steve to replace weird al yankovic. You should do their ads. Theres a big difference in the hair issue. You would be more persuasive than him. Maybe zach could do momo and tinder. Theres a whole doppelganger thing going on with zachs hair and weird al. Its just remarkable the way in which by the way, 17 billion. Not to change subjects but thats part of it. Its all part of the same story. Only 17 billion for uber . If twitters still worth 25 billion, why cant uber be worth 25 . Do they make money . I think its a couple hundred million. Dont quote me on that. But i remember talking to travis count Global Growth rate. Expansion. And clearly a disruptive company. This is where the fed criticism comes in, not to bring it all back to the fed, but when you have people looking for yield i always wonder when you get to a point in time where capital chases crazy ideas. Right . It should be that the idea is chasing the capital. But which is the crazy idea . Uber or if i had to put one on the krady idea it would be the revival of radio shack. If they remake themselves, thats great. I dont know. These are words that will certainly come back to haunt me. But 17 billion for a taxi company seemed a little over the top. But i can go onto my phone, get an uber to take me to radio shack, where i can buy those rca plugs, and then take me home. And then put it on your momo profile. Weve got to take a quick break. More closing bell. Final thoughts with the panel when we come right back. 4 7, but there are no branches . 24 7 its just im a little reluctant to try new things. Whats wrong with trying new things . Feel that in your muscles . Yeah. I do. 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It will be Steve Liesmans next interview with a member of the fed will be the most important thing for the stock market unfortunately. Yeah, unfortunately. I have a couple coming up but i cant talk about them just yet. There will also be some fed speak, so to speak, next week. How much does that matter . I dont know that its going to be the kind of stuff the market is looking for. There are some president s who will speak but in terms of janet yellen i guess id say a little critically i think she needs to be out there talking more about the economy. Shes really decided to rely upon her press conferences as being the place where she puts the stamp. But things change and it wouldnt be unusual dr. You guys agree . Barack obama cant be too happy with janet yellen. He wanted her to run around telling everybody how great the economy was. Might have saved imagine if the midterms had been next tuesday on the back of the jobs report. I dont think it would make a difference because people still dont experience it. You have 10 Earnings Growth on the s p. Clearly this is not all a fed derivative. 4 earnings revenue growth. Take out 1 for europe. Its maybe 5 for the u. S. Gentlemen, thank you for being here. Its been a lot of fun. Look forward to steves radio shack campaign. Fast money is coming up in just a few moments with melissa lee. Whats on tap . Twitters down 10 from its first day of close as a public company. So were going to decide whether or not you should buy or hold this thing. Straight over to you guys. Thanks a lot. Fast money friday starts right now. Live from the nasdaq marketsite in new york citys times square. Im melissa lee. Our traders tonight are tim seymour, pete najarian, brian kelly, and guy adami. At t just announcing a 2. 5 billion deal. Well have the details coming up. But we start with twitter. One year ago the company went public. The stock down 45 from its december highs. It is down nearly 25 this month alone. Todays wall street journal out with a scathing piece on the companys management saying twitter Ceo Dick Costolo struggles to define vision. What do we do here in do we need