Tim leach is with me. He says this was a much needed pause. He joins us along with bob from cabbot Money Management along with rick santelli. Tim, you believe theres an upside . I do. This has been the clearing correction weve been looking for in the marketplace. Granted, were going to be in kind of dead water here until after the election after the election, were going to get clarity regardless of which way the election goes. Were looking for a positive bias to the end of the year. What sectors lead us in that positive bias . Where do you want to be exposed . Were still believers in technology. We know its been soft here lately. Theres going to be a tremendous amount of demand. As we know, revenues are really hard to grow in this kind of marketplace. So companies are going to have to continue to squeeze efficiency out of their operations. That means technology. Were also believers in finance and financial companies. Okay. Rob, where are you on this question . How are you allocating capital . Yeah, were quite bullish today. Its really a sea of bearishness out there today. On a relative value basis, equities are extremely cheap relative to bonds. The bond is the biggest bubble weve seen since the 2000 tech bubble. We think equities are positively positioned here. Were favorably inclined to technology. Were also favorably inclined to productivity enhancers. These are Companies Like intuitive surgical, salesforce. Com, companies that really help build the bottom line. The other thing id mention is were the most innovative, creati creative, and adaptable economy on the planet. A great example of that is the wall street journal article today on the lowcost natural gas. Thats a really big deal for our economy. Its really a big dividend for the growth of our economy. I think its totally underestimated by the economy today. Yeah, you make a great point there. The potential, which certainly is big. Rick santelli, it was a quiet day for equities. What were you seeing in the bond pits . The bond pits havent really given us too many clues that anything is going to be radically different. Just because its a bubble feel or makes equities look cheap by chair son, many believe that condition is going to dont exist with a boat load of extra volatility due to the election and the end of the year. I also agree with our guest. I think that energy and specifically natural gas is going to change everything. But being a vibrant adaptable economy only takes you so far. Things like the epa and regulations and government hindrance, well, those are all issues that give us a huge head wind. I think many of those issues will be modified depending on the election returns. How important is this election, tim leach, for the markets . I dont think the markets are going to be affected dramatically, maria. I think our system is so interlinked at this point. Theres not likely to be a major shift in Market Sentiment regardless. Rob, what do you think . I think the most important thing is to get the election behind us. That will create less uncertainty. Give us clarity. Then when we get to the fiscal cliff, we can have less uncertainty. Less uncertainty is higher stock prices. Are you seeing the fiscal cliff be an issue for clients . I mean, i know that ceo after ceo have come on this show saying that it is one of the reasons that theyre delaying hiring plans. I think its keeping people out of the stock market today. I think its a big mistake. Id encourage people to look at the strong Balance Sheets today, the relatively good profit potential of corporations today, and how underexposed institutions and individual investors are to equities. Thats the reason the markets going to move higher. Any thoughts on the feds Statement Today . Did we learn anything, rick . No, didnt learn anything. But i can continue to think i cant believe these guests dont think that a potential change in power at the Federal Reserve isnt going change a lot of the dynamics they look at every day like the stock market. I mean, a lot of the rally suspect necessarily tethered to fundamentals. Should ben bernanke, even if he stays until 2014, if it looks as though mitt romney is going to win, i think the market has to make an adjustment long before the fed chairman actually leaves his post next year. All right. So youre talking about a change in the white house as well as a change in the Federal Reserve. Thanks, guys. Really appreciate your time tonight. See you soon. Thank you. Bob, this market today under some selling pressure. Not a bad day, though. Fractional moves. I think the big hope was that the fed would sort of make some comment about the economy. Really didnt happen. There was a bit of a delayed reaction. A very narrow trading range. Take a look at the Dow Jones Industrial average. Weve been drifting lower for the last several days. Were doing a little bit of technical damage. The hope i had this morning was that maybe theyd upgrade their outlook on housing at least. Look at the Home Builders today. New home sales, highest since april 2010. We got some of the Housing Starts numbers that were the best in years. I thought theyd upgrade that. They didnt do that either. How about the earnings picture . Earnings are coming in flat. You know that. The revenues are light. Thats the big story so far. Your guest was just talking about that. All these Companies Reported revenues below expectations. Many Different Industries theyre in. How about the transportation sector . Could it get any worse for the trains, for the railroads out there . Norfolk southern, the latest company to disappoint and give negative guidance on the outlook. All the major transports to the downside. All right, bob. Thank you so much. Let me get to julia boorstin. We have breaking news on zynga. Over to you. Yes, maria. Were getting their earnings. They broke even. Zero cents nernings per share. Thats in line with expectations. Revenue looks a little stronger than expected. Revenue of 317 million. Thats up 3 year over year. Wall street was expecting 256 million in revenue. The key thing here with zynga is going to be guidance. It looks like the guidance is coming in a little bit light. Bookings are projected to be in the range of 1. 09 billion to 1. 1 billion. With zynga, were going to have to continue to dig through the numbers. Obviously zynga stock has been suffering on the fact its cut 5 of its work force. It is ending 13 of its games. Were going to continue to look at the numbers. Back to you. All right. Stick with us. Still a lot more to come on this jampacked edition of the closing bell. Coming up, banking on meredith. Financial sector guru Meredith Whitney talks exclusively to maria about how to play the banks moving into the fourth quarter. And updated status. Why has one prominent tech investor who predicted on this show facebooks big fall now turn bullish on the stock . Keep it here to find out ahead on the closing bell. With the fidelity stock screener, you can try strategies from independent experts and see what criteria they use. Such as a 5 yield on dividendpaying stocks. Then you can customize the strategies and narrow down to exactly those stocks you want to follow. Im mark allen of fidelity investments. The expert strategies feature is one more innovative reason serious investors are choosing fidelity. Now get 200 free trades when you open an account. Welcome back. Federal prosecutors suing bank of america for allegedly scheming to defraud fannie may and freddie mac. Scott cohn with the latest details. It is a 1 billion civil suit over alleged mortgage fraud at country wide. The suit says countrywide became so intent on churning out mortgages and selling them to fannie may and freddie mac that it created a program it called operation hustle, eliminating controls to stop fraud just so it could sell more loans as the housing mark was collapsing. Later when the loans went bad, countrywide wouldnt buy them back. The bank of america ceo promised to clean up the mess. Here he is with maria in 2010. Were trying to put some of the issues of the past behind us, whether its cleaning up doesn countrywide or merrill lynch. Litigations are a part of life. Theyve already paid a 3 billion settlement with fannie may and freddie mac last year. They have not responded to our request for comment. Take a look at how some of the biggest bangs aks are measu up for the quarter. All beating street expectations on earnings per share. If you look at returns alone, its been a good year for the overall group. As you can see there, the s p financial index up on the year. Meredith whitney, one of the most wellknown Industry Analysts on wall street joins me now to talk about the group. Meredith, good to see you. First, lets talk about the bank of america suit. Whats your take on this . How important is this going to be for the overall earnings picture and ultimately the stock . Its a sad statement when you say, oh, a 1 billion lawsuit, thats not so big. Its a frightening statement. But it reminds me of the famous Willie Sutton bank robber question, why are you robbing banks . Because thats where the money. This is going to be an analyst beatdown in terms of the banks. You showed Brian Moynahan talking about legal lawsuits are a part of doing business. Sadly, more than ever for the banks. We spoke to bank of america today. They think the case is meritless based on the fact that five of the issues at point are have been settled. One of them is not worth pursuing. The other one basically, that leaves one of seven claims questionable. So its just you know, i think this is going to continue. How many of these claims have actually merit and legs will be determined. I dont think this is unique to bank of america because its so n huge in the mortgage space. Countrywide has been accused of doing less than ethical things in the past. Everyone with mortgage exposure should be prepared. So this is going to become common place then. The lawsuits are there piling up. Is it going to impact the stocks . I think its just an overhang for the stocks. Theres so much more going into the stocks right now, the valuations of the stocks. You talk to most investors, they dont want to own financials. Its interesting. This past week the regional banks have traded off dramatically. This is an area we were cautious on because of valuation. Because Interest Rates are so low, they cant make money off net interest margin. That shouldnt be a vise. For the regional banks its harder because thats how they make money. For the big banks, they are huge beneficiaries for qe3. Its a mixed message. I think its too complicated for people to want to spend time with and deal with. Let me get your take on what Warren Buffett said today, raising concern for the entire industry. Listen to this. The profitability of banking is a function of two items. Return on assets an assets to equity. And return on assets is not going to go up, particularly. Usb has done the very best on that. Theyre at about 1. 7 . Wells is between 1. 4 and 1. 5 . Most banks are lower. Its a Good Business. It wont get back to what it was. This from a guy whos knee deep in wells. Knee deep in a lot of financials. A lot of financials. Huge stake in goldman. So how do you play it . Well, i think what hes saying is hes talking about the lending business, the leverage business exclusively. Banks have fee making opportunities. He cited usb having a high return on assets. Thats because 50 of usbs revenues have fees. There are other ways to skin the proverbial cat. Is the Bank Managing its expenses . For many banks, a low rate environment allowed them to have really unsupportable leverage positions. So they may hire a return on assets. Now youre getting back to rial a normalized return on assets, return on equity environment, certainly a leverage environment. I would put it this way. Around the world, so you look at asian banks, turkish banks, latin american banks. They have higher capital levels than even our banks do or at least as high as the best banks do. And the capital has improved quite a bit. And they have 20 return on equity. To say it cant get back to a profitable scenario is maybe not the right way to look at it. You have to be much more efficient and much more optimal about how youre making money and feebased businesses. Is there a stock right now you would buy in banking . I still like bank of america. Its cheap and i think that theyve got a lot of stability behind the company for the first time in a very long time. So, you know, if you look at it from a priced to earnings perspective, it doesnt look cheap. From a price to tangible book, its compelling. Whats your take on citi . Last week you told clients no ceo could fix citi. What do you think about the new ceo . I dont know that anybody knows Michael Corbett outside of citi. I thought it was very clever way of combining the chairman and ceo role. But, you know, any time a ceo is replaced sort of midstream, its a shock to the whole system. I didnt expect him to be a ceo in 2013, right. I would have expected something to happen with vikram pandit. To have something happen the day after earnings, that was a shock to everyone. I mean, we still dont know really what happened. The board obviously wanted him out. Yeah. Michael corbat, thats an interesting take. Youre right. They combine the chairman and ceo roles with this new position. No, because its mike oneills agenda. Anyone can go into that slot, and its mike oneills agenda. Okay. Chairmans agenda on that. In terms of job cuts, youve been saying were going to get more layoffs on wall street. What are you expecting . Youve seen lot of european banks have layoffs. This gets back to the question you asked me about Warren Buffett. The only way banks will return on assets and equity is if they streamline the business and get more profitable. Shareholders are saying, were not interested, because the returns are not good enough to invest in. We saw light revenue growth. Thats the only way theyre going to boost the bottom line, cut down expenses. The bottom line is clearly boost by qe3. That only affected the big banks. The big banks have a lot of wood chopping to do. You have efficiency ratios in the 60 range, which they should be in the 40 range. Theres a long way to go. That takes real leadership. That takes real execution. Its been so easy for the banks for so long up to 2007, 2008 because they had the ability to leverage to the hit. They no longer have that ability. They have to show they no what theyre doing and theyre going to be profitable stewards of share holler capital. So you think were going to see more layoffs on wall street. No doubt about it. Wells fargo, a lot of people talk about that being the real beneficiary of the fed buying this 40 billion in mortgages every month. Do you like wells right here . Warren buffett, of course, saying hes buying it again. See, my take on wells going into the quarter was specifically about qe3. I was positive about wells going into the quarter because of qe3. The stock sold off because qe3 sort the offset to that is margin pressure. Effectively, the fed is becoming the surrogate Fannie Freddie and buying securities off the banks Balance Sheets, monetizing the banks Balance Sheets. And you have a quick conversion of assets to cash if you want it. So i think from the feds perspective, theyre going to have to start actively buying paper directly from the banks. Wells has gone against the grain and really gone double down in the mortgage space. It might just save them in front of the expectations. I mean, wells has been so clever on the Interest Rate side of the equation. Its just impressed me to no end. The stock has done really well. Dodd frank, a quarter of the rules have been implemented. Do you think this is going to be a continued pressure for the banks . I guess the volcker rule continues to come up. Its more about the regulatory cost associated with dodd frank. Who really knows. I mean, i feel like the market now is so policy dependent that its not that im not on top of it. Im paying attention to it every day, but so much is still up in the air. Its hard to say. The banks have other challenges. Lets take a look at banks as widget companies. They have to get their expenses in order. Dodd frank or not, theyve got to get expenses in order. Thats why youre expecting the layoffs. Thanks, meredith. We want to take you live to outside the courthouse. Were waiting on mr. Gupta to come out. Bertha coombs is outside the courthouse right now with the happenings. Over to you. Maria, that sentencing hearing took 90 minutes of arguments, and its still underway as the judge has delivered his sentence. He has sentenced rajat gupta, the former mold Goldman Sachs board member, to 24 months in prison. The judge making a decision, weighing on the one hand the severity of the crime, which he said in the hearing was not only overwhelming but disgusting, he said. In his sentence, he said at the very time our institutions were in great distress and in need of trust, that rajat gupta tipped off the 5 billion investment that Warren Buffett was going to make in Goldman Sachs. He says it was the functional equivalent of stabbing goldman in the back. However, he also waived the copious amount of evidence that showed that mr. Ratna performed good work. Some 400 letters from the likes of bill gates. Unbelievable story, bertha. Really. I was reading the lower thirds and what we have on the screen. The judge said not only was the evidence overwhelming but disgusting. Really it was, maria. We have a statement here from the u. S. Attorney saying with todays sentence rajat gupta now must face the sentence of his crime. He hopes others will take heed of what happens here. Thanks very hutch. Now over to julia boorstin. I want to point out that even though zyngas revenue grew 3 in the quarter, the bookings, which is the key number wall street analysts pay close attention to, the bookings were down 11 year over year. That puts zynga right in line with expectations. The bookings and earnings were right in line with expectations. Digging a little deeper, the average daily bookings per user, so thats the amount the average daily user is spending every day, actually declined 19 year over year. They did see daily active users, the number of people playing grew 10 . Julia. Thank you so much. Some huge movers in the after hours trading session. Also ahead, aisle talk with Raymond James financial ceo. Hes speaking with us before jumping on the analyst call. Keep it here to find out how things are going in his world. Then facebook shares posting the biggest daily gain ever. Ill talk with dan niles on the back half of this show about why hes gone from shorting the stock to believing that he is seeing a bottom in the stock and covering that short. Back in a moment. Welcome back. Zynga just one of the Many Companies making big moves in the after hours. Lets get back to jackie deangelis. A slew of Companies Reporting after the bell today. Zynga the big names investors have been watching, especially after facebooks positive results yesterday. Lets review the numbers. Third quarter eps was flat, but that was right in line with expectations. The revenues, 317 million. That was higher than the 256 million expectation. After last quarters disappointment, of course, zynga was in a tough spot here. Looks like they delivered to the market. Looks like the market is impressed with these numbers, up 13. 6 in zynga shares at this point. I want to move on to symantec. Third quarter excluse me. All right. Sen better on both the top and bottom lines. A revenue of 1. 7 billion. Thats also better than the 1. 655 billion expected. Guidance for the next quarter here. The revenue in the range of 1. 72 billion to 1. 71 billion. Lets also take a look at wynn resorts. Third quarter eps, 1. 48 and a revenue of 1. 3 billion. A big beat there. The revenues were right in line with the estimates. The company also saying that its approved an 8 cash dividend, which includes the 50 cents per common share Quarterly Dividend and also saying its planning to increase its Quarterly Dividend to 1 per share in 2013. That stock up 3. 4 . Last but not least, take a look at crocs. Reporting 49 cents a share. Looks like we have an eps beat there, but revenues shy of expectations. Theyre guiding for fourth quart e revenue in the range of 220 million. The shares of crocs down right now nearly 4 . Maria. All right. Thank you so much. Meredith whitney speaking with me a few moments ago about the lawsuit facing bank of america. Everyone who has mortgage exposure should be prepared for these kind of lawsuits. Ill get reaction from Raymond James financial ceo on the other side of this break. You wont want to miss that. Its an interview youll only see here. Also coming up, Facebook Stock has gone from dud to stud overnight. Ill speak with closely watched facebook critic dan niles about todays pop. Wait until you hear his take. Back in a moment. Welcome back. Noted Technology Fund manager dan niles made a killing on facebook from day one because he shorted it. He bet against the stock at the opening highs. In fact, he warned viewers of this program about facebooks valuation in the days before the ipo. Now hes covered that short and says the stock may have bottomed. Joining me now on the telephone is dan niles. Always wonderful to talk with you. How are you . Im doing great. You made a lot of money shorting facebook, but you covered your short. Yeah, were actually long it. So youre buying the stock now. Why . Well, we bought it yesterday, got long. Main reason was the following. When you look at facebook and the reason we were negative on it from day one is that they had no mobile strategy when they went public. So if you think about it just big picture, when the way facebook makes money is when you log on to facebook on your desk top, they make money by selling you advertising. The problem is, when they went public, they didnt have a mobile strategy at that point. So a lot of users were starting to access facebook off their smart phones and there was no money that facebook was making off this. I see. Starting in the month of june, however, they launched something called sponsored news feeds. This is, you know, very tiny, was doing a million a day in revenues at the time. What that did was it enabled them to finally start making money off of their mobile users. So if you think about it big picture, theyve got about 604 million mobile users. Thats up 61 year over year. Their total users is only up 26 year over year. So if you look at that, thats the number one thing to get your arms around president their mobile ad revenues, which in march were zero and in june were 10 million. The quarter just reported was over 150 million. By december, its probably over 300 million in mobile ad revenues. As that starts to ramp, it changes the picture of facebook completely. You can see it if you look at the metrics. Wow. Okay. So you believe in the mobile strategy. In terms of the pricing, you know, it dropped below 20. Its obviously rallied today. Youre long. Whats your target on this stock . How much higher can it go . Well, i mean, i look at it this way. Price targets are always tough because you just dont know how low they can go. Obviously, there have been a lot of people calling a bottom on facebook all the way from 42 down. That hasnt worked for one simple reason. Fundamentals are terrible. If you look at things now, the fundamentals have started to turn. Youre going from no strategy to something. The something, the good news is the something is growing quickly. If you look back to where the stock came public, it came public apt 38. Obviously it was just completely mispriced for the fundamentals at the time. Theres no reason to think the stock cant get back to its ipo level over the course of the next year or two. Wow. What is the risk in this stock, dan . I think the risk in this stock is really one of misexecution. The nice thing about this name, and i said this before they ever went public, dont confuse a Great Company with a great stock. This is a Great Company. It always has been. The problem is they werent really focused on making money on mobile before. Well, having a stock price get cut in half gets you focused very, very quickly. So i think with the company, you know, they are the dominant player in networking. Theyve got a billion users. Theres only about 2 billion users on the internet in total. So they have roughly half of it. There are 7 billion people in total. These guys are dominant. You dont need to worry about that. The biggest risk you really run is them misexecuting, them doing something users really dont like so they get turned off. The good news is even if users get turned off, where else are they going to go . Theres not a lot of other good options. Thats the nice thing about having an investment in this. Do you have a target in terms of mobile ad revenue for facebook . I dont have a target in the sense of well, yeah, i do, in the sense this quarter they did 150 million. By the december quarter, they should be able to do over 300 million. Thats what im looking for. You can back that number up by thir thinking, well, they had about a 1 million run rate exiting june. They have a 4 million run rate right now for sponsored stories. That should continue to grow. They talked about putting more of those into the news feeds. When i think about it next year, i think the mobile business saying it can get close to, you know, 1. 7 billion to 2 billion, thats not an unreasonable number. For sure. Dan, real quick while i have you, the slowdown in technology were obviously seeing based on the revenue numbers from so many techs, are you worried about this . Do you want to hold off going knee deep in tech right now because of the slowdown or no . Well, i think its a balancing act. I think cnbc had me on a few days ago because we were short google. You have to know the fundamentals of the Companies Really well. If you go out and say i want to buy tech, youre going getever head ripped off. You have to focus very hard on the names that are doing well versus the ones that arent. Whats your favorite name . Whos doing really well . Well, in my opinion, you know, the Tech Companies that benefit from the move from tablets and smart phones that utilize them, so i think the ecommerce like ebay in particular is my favorite. You can now buy whatever you want sitting at the airport or on your lunch break. Ebay is a favorite of mine. Some of the media Companies Like lions gate where you can watch content on your smart phone and tablets. Theyre doing well also. Dan, great to talk with you. Thanks so much. Thank you. We appreciate it. Well be following the facebook call as well. Raymond james ceo up next with his take on the financial int industry. Plu plus, will tomorrows heavy hitters throw wall street off kilter . Well check what will shake your money tomorrow. Stay with us. Hahahaha hooohooo, hahaha this is awesome folks who save hundreds of dollars switching to geico sure are happy. Id say happier than a slinky on an escalator. Get happy. Get geico. Melons oh yeah well that was uncalled for. Folks who save hundreds of dollars switching to geico sure are happy. How happy, ronny . Happier than gallagher at a farmers market. Get happy. Get geico. [ male announcer ] this is joe woods first day of work. And his new boss told him two things cook what you love, and save your money. Joe doesnt know it yet, but hell work his way up from busser to waiter to chef before opening a restaurant specializing in fish and game from the great northwest. Hell start investing early, hell find some good people to help guide him, and hell set money aside from his first day of work to his last, which isnt rocket science. Its just common sense. From td ameritrade. Welcome back. Raymond James Financial out with earnings just moments ago. The company reporting earnings of 69 cents a share on a nongap basis. Wall street was expecting 63 cents. Revenue coming in just under 1. 1 billion. Joining me now on a cnbc exclusive is ray monday james p ceo paul riley. Great to see you again. Thanks so much for joining us. Great to be here, maria. How was the quarter . Can you walk us through business of the last three months . Yeah, the quarters been good. Were up 14 net revenues over last year. If you take out the expenditures, its been a Solid Earnings quarter from the integration. In spite of an uncertain market and integrating a big business, i think we had a very, very good quarter. When will you believe integration has been completed and the company is one and youre behind any sort of uncertainties over the integration . Well, i think when we get the platforms, the Technology Platforms completely integrated. The management teams are. The retention has been extremely high. Much better than we had hoped for. Well, you hope to keep everybody, but much ahead of where we projected. People have settled in. The management teams are working together. So i guess youre not totally comfortable and certain until youre completely on the Technology Platform and the last piece of that conversion will be in february of 2013. What can you tell us about participation in this market . It feels like the Retail Investor has left because of so many issues. What are you seeing in terms of the flow right now . Who is buying or really trading this market . Well, you can see that, you know, actually our Retail Investors have come back into equities over the last quarter. I think its more of a yield search. If you look at fixed income, theres just a lot of risk, especially if you go long. Retailers looking for yield have ventured back into the equity markets looking for dividend yields. Then you have the uncertainty of tax law changes and the political and economic environment. Just like the institutional investor, the Retail Investor is feeling certain. We have to get some uncertainty out of the system. Hopefully that will happen after november. Are they risk averse, would you say, paul, or are they i mean, youre right. Everybodys looking for yield with rates where they are. Yeah, theyre risk adverse. The fear is that people start reaching for yield and taking risk. So we try to keep people to stay focused on their goals and not to reach up the yield curve. As we all know, Interest Rates have been held artificially low by the government and will be for some period of time according to the fed. So youre going to have to work through that environment, which is really a tax on retirees. What are you seeing in terms of underwriting and trading . Have you seen a big impact in these last three volatile months . How is that part of the business doing . You know, id say the biggest challenge institutionally has been the Institutional Sales commission. Its clearly been squeezed. More has gone electronic and etf. The over the desk commissions, the part we really get paid for, has had pressure. You know, in the equity underwritings, the issues are down too. Of all of our Business Segments we saw growth except in our Equity Capital markets, which is really under pressure all year. I see. And we just talked to bank analyst Meredith Whitney. She said were still going to see lawsuits, the banks increasing profitability, but its going to be a lot leaner. Lets take a listen. The only way banks will increase return on assets and return on equity is if they streamline the business and get more profitable because shareholders right now are saying, were not interested, because the returns are not good enough to invest in. Are you still in a deleveraging mode . Are we seeing deleveraging right now within the Banking Sector . Whats your take . Well, i think the sector as a whole is clearly deleveraged. For Raymond James, we were very underleveraged and very conservative. We just came off a record year in banking profits and a record quarter in banking profits. We didnt really have the losses. In 09 we made money every quarter. We made money in 09 for our banking as a whole alone. So for banking, its been a Good Business for us. For the businesses that were more leveraged and had some legacy litigation issues, theres still some work to do. And eventually, either prices on loan has to come up, what they can charge for loans and other services, or return on equities is going to go down unless equity will come into the system. I think the regulation is pushing the Banking System too hard right now. Right. And thats with threequarters of the dodd frank legislation not even implemented yet. Yes, i know. Theres still a lot coming. For an organization that really wasnt affected too much in our practices by dodd frank because of the conservative nature, our reporting costs are up tens of millions of dollars just to comply, and we have a lot to go yet. Its a challenge and a concern for the whole industry. Paul, good to have you on the program. Thanks so much. All right. Thank you, maria. We appreciate it. See you soon. Paul riley, ceo at Raymond James financial. We have breaking news now on best buy. Maria, the leadership changes that continue to reverberate at best buy, the Largest Electronics retailer still in the country. There you see the stock down 60 . The new ceo and president has announced a shakeup in the heads of the u. S. Businesses. Mr. Mike vitale is going to retire at the end of the year and tim sheehan is going to leave the company at the end of the month. Thats the main shakeup. Sean score, who had been with the company in a connectivity group, is going to be promoted to head the u. S. Retail channel. There are going to be two basic businesses there. Online and retail. Online will be overseen by Steven Gillette and mr. Score gets bumped up to head the retail channel. Comparable store sales are going to be down between 5. 3 and 2. 3 when they produce their earnings about a month from now. The company is look at profits that are probably going to be 100 basis points lower than they were this time a year ago. Thompson has their estimates at 36 cents for the quarter. All right. Big move in that stock in the extended hours. Thanks very much. Fast money begins in a few minutes. Simon hobbs is here with a preview. Maria, on fast money at 5 00, well be taking positions ahead of apple and amazon reporting tomorrow. Steve forbes will be here at the nasdaq to explain why a romney victory will be good for the markets. Well be raining on the cloud. The latest from f5 networks, poor results there. And the ceo of toys r us will be here to give us that warm holiday trading. Well be live on fast money. All right, simon. Well be there. Another batch of key economic reports d reports due out tomorrow. Well tell you which ones to watch for. Stay with us. Mike rowe here at a ford tell me fiona, whos having a big tire event . Your ford dealer. Who has 11 major brands to choose from . Your ford dealer. Whos offering a rebate . Your ford dealer. Who has the low price tire guarantee. Affording peace of mind to anyone who might be in the market for a new set of tires . Your ford dealer. Im beginning to sense a pattern. Buy four select tires, get a 60 rebate. Use the Ford Service Credit credit card, get 60 more. Thats up to 120. Where did you get that sweater vest . Your ford dealer. All right. Welcome back. 30 seconds on the clock. Our next guest will tell us what they think will move the markets and your money tomorrow. Stephanie link from the street, great to see you all, thanks for being here. Stephanie, we kick it off with you. 30 seconds on the clock. Yeah, there are 60 companies in the s p 500 that are reporting tomorrow. Its going to be a busy day. Im looking at International Paper and procter gamble. Theyve got exposure to consumer and industrial. And the ceo made cautionary comments about china on cnbc. I want an update there. Procter gamble, an update on the restructuring, if it doesnt come to pass, i think you have new management. I like both stocks on weakness. Kevin, you are up. 30 seconds on the clock, what do you want to look at tomorrow . Ill be watching the economic reports in the u. S. The headline numbers are likely to be quite positive. Were expecting a drop in initial jobless claims, a rebound in the pending home sales. And a surge in durable goods orders. The orders mostly reflects a rebound in the volatile aircraft series. More important and more uncertain will be the capex component within that durable goods report. Weve seen a dramatic slowing there. Likely uncertainty of tax policy has impacted that. Well see if that bounces back. But the other data are likely to be quite positive. Perfect timing there, kevin. Last but not least, chris over to you, 30 seconds on the clock. What are you looking at . Watching the charts right now of the technical damage in the markets over the past week or so, and the s p 500 breaking between that key 1,422 level, crude oil breaking beneath threemonth lows here today touching 85, possibly poised for 80, gold around 1,700, maybe making a run around 1,600. Tenyear treasuries continue to get rebuffed around 1. 8 . And aussie dollar trading around 1. 0350. Well leave it there. Thank you so much. We appreciate all your insights. Well be watching all those events tomorrow. Well see you soon, thanks, stephanie, chris, and kevin. Take care. Greg smith on this program yesterday hitting Goldman Sachs hard. Why wall street might not want to completely dismiss him. Thats next. Stay with us. Whats next . Hes going to apply testosterone to his underarm. Axiron, the only underarm treatment for low t, can restore testosterone levels back to normal in most men. Axiron is not for use in women or anyone younger than 18. Axiron can transfer to others through direct contact. Women, especially those who are or who may become pregnant, and children should avoid contact where axiron is applied as unexpected signs of puberty in children or changes in body hair or increased acne in women may occur. Report these signs and symptoms to your doctor if they occur. Tell your doctor about all medical conditions and medications. Do not use if you have prostate or breast cancer. Serious side effects could include increased risk of prostate cancer; worsening prostate symptoms; decreased sperm count; ankle, feet, or body swelling; enlarged or painful breasts; problems breathing while sleeping; and blood clots in the legs. Common side effects include skin redness or irritation where applied, increased red blood cell count, headache, diarrhea, vomiting, and increase in psa. See your doctor, and for a 30day free trial, go to axiron. Com. And finally, we are looking at a live picture here of mr. Gupta, the exGoldman Sachs director rajat gupta was sentenced today to 24 months in prison for insider trading. And the sentencing has just happened. He is serving a hell be serving a jail sentence of two years in prison. Of course, the sentence was for leaking Goldman Sachs board room secrets to a Hedge Fund Manager at the center of the u. S. Governments crackdown on insider trading, 63 years old, the most influential corporate figure to be convicted so far. Rajat gupta. And finally tonight, my observation on drinking the koolaid for 12 years until suddenly it no longer tasted any good. Yesterday on this program, i sat down with greg smith, the former Goldman Sachs salesperson who worked his way up from intern to sales trader in the london office. But then he abruptly quit and served notice in a New York Times oped. Criticizing the firm. Now, of course, writing a socalled tellall book about how bad Goldman Sachs is to its clients. Really . If it was such a bad culture, why did he endure it for years. Im not being an apoapologist f Goldman Sachs. There are actors within these big banks and some banks who probably do not put their clients first and take them for granted. However, it leaves a bad taste in my mouth when i read so many stories about the gogo years and how mr. Smith and company enjoyed them until, frankly, they decided they didnt. I do not know if this book is just a bunch of sour grapes over his compensation and promotions or the lack thereof. Greg smith claims it is not. We can all make our own judgments on that. Even if you dont believe the intentions are pure, this book should nonetheless be a wakeup call for wall street. The fact is, i do believe there are issues in the community. Why else has the Retail Investor left the party . Trust has plummeted. Between the financial crisis, flash crashes, trading glitches, and debacles like the facebook ipo, it has taken a toll on the Retail Investor. Bottom line, clients should be the priority, integrity should be the goal even at the expense of profitability. So books like these will n