13year high, 3985. S p 500 closing at an alltime high. Unchartered territory there. With a gain of 7. 5 points, at 1798 on the standard poors. Dow and s p wrapped up the week at alltime highs. Euphoria continues here. Bob pisani, the dow closing in now on 16,000. Nice, round number. The s p also closing in on 1800, just two points shy. Historic highs, dow and s p and dow transports, mid caps at historic highs. New tech, high beta back in, Interest Rate sensitive back in, tapering sort of off the table, a lot of people feel for december, high beta names, new internet names all up strongly this week. Emerging market, Interest Rate sensitive groups. Interest rates flattened out in the latter part of the week. Countries that are emerging markets all did very well. Home builders, another Interest Rate sensitive group, did very well. Pawltey, kb, ryland. Biotech did well, gilead, bichlt ogen, names that have been moverers on the upside. Next week we anticipate the fmoc minutes from october meeting. Retailers will report a number of earnings. Urban outfitter, jcpenney, best buy, and Consumer Price index and existing home sales. Finally, for the week, ending at the highs, volume picked up at the close. Theres biotech. Major indices all ended on the upside, as you said, historic highs. Have a good weekend. Have a great one. Joining me is stephanie link from the street, jim lowell, Adam Thurgood and kenny. Kenny, another meltdown at the end of the day. How come the acceleration here. It was an expiration day. Not only increased volume on the opening but also on the bell. Bob said it, now its just a matter of the market really wants to test 1800. It took 1800 on the s p. It took us right there to 1798. You can feel the excitement, can you feel the momentum building, right . It wants to at least test it and see whether or not were hitting real resistance. After the testimony yesterday, people are now bob said, it you said it, people are sure nothing is happening well into 2014. Rates are low. This is the game in town. Time to get in and stay in. Stephanie, is that what you want to do here despite the big move upwards in the last six months . We have been putting money in over the last couple of months, but i think you definitely want to take profits when you have them. This week we sold some ford, we sold om aig, we sold a couple of different positions we made money in. But i do think whether or not the market goes higher, i think youll continue to see a rotation into groups that benefit from the eventual taper. I actually think well see a taper some time in the First Quarter because i think the Economic Data has been okay. And i think its going to get better. It really we didnt really have a lot of Economic Data this week. Next week is very important. Of course, december 6th is the big nonfarm payroll numbers. I actually think, though, better gdp, better isms. Even the Industrial Production numbers today, manufacturing data, the capacity was the best since june. There are underlying data points that are saying the economy is getting a little better. I think we taper. You want to own financials, tech and industrials. Jim lowell, what about you . We have some reports next week, some data coming out next week. What are you expecting from that and would that be a catalyst to put money to work here or do you want to stay to the sidelines, given were up so much already . I think stephanies soluti absolutely right. We have imperfect conditions, thats been the case for several year. Market has been able to reach historic highs. The reality issing weve been unable to see negative catalyst through earnings even eventdriven news. Perfect conditions for a rally. That said, perfect conditions have a nasty way of turning on you when you least expect them to. Remaining well diversified, well balanced and i think also, as stephanie noted, trimming some of your spectacular gainers and rebalancing to some of your other ideas, other Asset Classes and your mix a prudent idea at this point. Adam, lets talk about valuations here. How would you characterize this market . Is it fully valued . Were about at the longterm average as far as pe multiples go. On that basis were about at fair value. However, denominator of that equation is expected to move higher over the course of the next year, so stocks seem to be undervalued looking forward to a pe basis. If you look at price to sales ratio on the s p 500, were about 10 over value. But i think thats more indicative of this weak top line recovery weaver had rather than pure market valuation. I tend to look at the pe ratio and believe thats more important at this point. How important is the china report coming out next week . Youve got the flash pmi coming out of china. Were all focused on the growth levels coming out of asia. Would you be looking at that for an indication for the Global Economy . I actually think chinas got to slow down. Its investment as a percent of gdp. That has to be a natural occurrence which means chinese growth is going to slow. That could actually be a positive for u. S. Equities because it will mean lower inflation across the globe and pe multiples tend to be positively correlated with low inflation. All right. Stephanie link, any catalyst from your standpoint for next week . Oh, yeah, a whole bunch of retail earnings report. Home depot and lowes are certainly going to be very, very important on the state of the consumer and the state of housing in general. They always give a great recap as to whats happening and the future. We also get tg xx and ross stores. Are consumers continuing to spend . Is macys a oneoff . Global pmis, here, china and eurozone. A very busy week next week. The retail story is an important one. Kenny, youre seeing real interest in a number of retail spaces. I know its bifurcated but youve had a number of surprises. I wonder if thats telling us something. Gas prices are down. Thats certainly helped the retail sector. Its interesting to see, as stephanie said, what happens with the rest of the earnings coming out last week. Yesterday we had significant misses. Walmart is a big name, kohls. So is macys the oneoff . What are other retailers going to say . Whats the tone . Next week people will certainly be make attention to that. Then the global macro data will focus the market. To stephanies other point, taking profits on outliars, thats fine, you should do that. Shes taking profits in outliars but putting that money back to work in the market. Its not, stephanie, as if youre still not in the market. You are. Oh, no, no, no, not at all. Weve been net money in for the last several months. We took money out in august and september and started putting it in the end of september, october. My point is, if you dont have a higher market, overall market, i think theres going to be certainly sectors that do well. Right. And im thinking its going to be the ones that benefit from the tapering, which i expect to be some time in the First Quarter. So, you are looking so, are there Interest Rate sensitive groups you want to own as rates start moving up in a sustained way . Yeah. I think the financials are a big beneficiary, right . Not only if we start to taper, it means the economy is getting better. Theyll be better loan growth. Also, the yield curve steepens so profitability for these banks, its much better over time. Industrials are also highly correlated to higher Interest Rates. Again, because the economy is doing better. Those are the two groups i like a lot. Well leave it there. Thanks, everybody. We appreciate it. Have a fantastic weekend. Well see you soon. A big gathering at the white house continues as we speak. No social occasion. President obama is meeting with insurance ceos right now. Just one day after his controversial decision to let people now keep their health plans if the Insurance Companies allow them to. Well keep you posted and up to speed on the latest developments out of the white house. Well discuss the impact on your money. Also coming up, forget black friday. One in four shoppers now say they will do some buying on thanksgiving. Well find out whats behind that with the head of the National Retail federation. Get ready to rumble trying to get xbox one on black friday. I thought we were getting playstations 4s. What . Me, too. No, guys, when i said were going to get the next gen Gaming Systems i was obviously talking about xboxes. But i want a ps4 not a crappy xboxes. Game on. Playstation rolling out one week before xbox one hits stores. Youve youre watching the closing bell on cnbc, first in business worldwide. We gave people a sticker and had them show us. We learned a lot of us have known someone whos lived well into their 90s. And thats a great thing. But even though were living longer, one thing that hasnt changed much is the official retirement age. The question is how do you make sure you have the money you need to enjoy all of these years. See who does good work and compare costs. It doesnt usually work that way with health care. But with unitedhealthcare, i get information on quality rated doctors, Treatment Options and estimates for how much ill pay. That helps me, and my guys, make better decisions. I dont like guesses with my business, and definitely not with our health. Innovations that work for you. Thats health in numbers. Unitedhealthcare. Welcome back. A mixed economy but roaring stock market. What does it mean for the crucial upcoming Holiday Shopping season . Courtney reagan. When i talked with reporters thursday, they say this holidays headwinds and tailwinds make Consumer Shopping season hard to forecast. Lack of confidence in washington lei lawmakers, Higher Health care, cutting into consumers budget, uneasiness with the job market, coupled with growth, and competition is intense. Online shoppers have grown in numbers and ease. Home values are rising. Stock market continues to hit new highs. Weather trends are favorable. The lowest holiday gas prices in four years make the nice list jolly . What will prevail, naughty or nice . Its hard to say. Most expect Holiday Shopping to increase 4 but gallup says they consumers have reduced Holiday Shopping budget over the past month. But consumers who say one thing ultimately end up doing something different. National Retail Federation has released a survey which shows 25 of those surveyed will shop on thanksgiving alone. 70 said they would shop on black friday. Lets get more on this survey and what to expect this Holiday Season with matthew shea. Good to have you on the program. Welcome. Nice to be with you. Looking at the survey, what was the most surprising finding from your standpoint . Well, i think its interesting to see that these trend lines continue as retailers starts the season earlier, as consumers demand promotions and better pricing. That more and more customers want to be out on thanksgiving and theyre shopping then. We had a dozen ceos of Major Retail Companies together in new york yesterday talked about this. Some of the things that courtney just mentioned, you know, the macro factors in a lot of ways look pretty good. With the stock market and home prices and gas prices. But the economic headwind are still tough. And we expect its going to be a very promotional but very solid Holiday Season. All right. So, youre looking for solid Holiday Season but promotional, meaning well have lots of discounting out there, right . Thats right. You mentioned all of the main things. Home prices, feeling looking better. Stock markets at record high. All this cash sloshing around. Look what happened at christies and sothebys this week with the auction and the art. And gas prices have fallen. This bodes well. Well, it bodes well. But i think what weve seen and a lot of people have talked about and commented on is this sort of twotrack bifurcated recovery. If youre at a certain income level and you have a lot of stability in your job position, your incomes been rising reasonably steady the last four, five years, you feel very good about where you are. But if youre in that other income level, youre not doing as well, you feel the uncertainties. The gas prices being alleviated, Commodity Prices being down. Those are great things but youre still die gusting payroll tax cut, uncertainty out of washington, the new this is week on the Health Care Bill. So, i think over the long term whats really got to happen is we have to get our economy growing. We cant just redivide the size of an existing part. We have to make that pie bigger and doll some things in washington to get people back to work and get businesses investing again. Absolutely. So, break this down for us, because we its very bifurcated. You make a great point saying, you know, the lower end and the higher end, because it feels like the upscale part of the economy is doing fine. But unemployment is still a major issue for a lot of folks. So, weve been getting conflicting reports from retailers. Nordstrom was pretty good. Walmart was just okay. Why is that . What is the discrepancy here and walk us through retail, whats doing well and what isnt. Well, just in terms of categories, as we head into the Holiday Season, we know apparel and clothing is always a big item. We know that electronics are going to be good, toys, 60 of people are going to buy gift cards. But part of this is the segment of the marketplace you serve. So, if your customers are feeling the pinch more acutely because of their incomes, theyre not seeing wage growth, they feel more concern about their job employment prospects, thats an issue. The Unemployment Rate is close to 7. 5 but the broader measure of unemployment has been hovering closer to 15 for years. If you look at males under the age of 25, 25 of them are unemployed. We cant just talk about things here in washington. We actually have to put people back to work. That means reforming our tax code, passing an immigration bill, doing trade bills. Things that will create confidence and get businesses investing. More importantly, get businesses hiring people and putting them back to work in our communities. Well, youre preaching to the choir. I mean, weve got ceo after ceo saying exactly what youre saying. Its just, business would like to hire but they need some clarity on some of these big issues. Let me ask you about safety. Do you think that safety concerns will drive people away from malls, particularly after the kenya incident and the one in new jerseys largest mall . Well, obviously, the safety of our customers and our members customers is of paramount importance, so theyre taking every precaution to make sure that the openings on black friday and on thanksgiving, to the extent theyre opening, and throughout the weekend and throughout the year are done with their safety in mind, first and foremost. So, i think most customers are looking forward to going out, having that holiday experience, and were looking forward to welcoming them and having them there. Yeah. And what about health care, how has that played into all of this . The messiness and upset over obama care . Well, you know, 90 of Retail Businesses are small businesses. Half of them have five or fewer employees. 90 of them have a single location. Many of those are the folks that will feel the pain of this Health Care Rollout most severely. Its just one more sort of burden, one more regulatory imposition at a time when theyre trying to create jobs and grow their businesses. And that uncertainty and that additional obligation that theyve got to now cut Something Else in order to meet that obligation makes it tougher to do. So, i think its going to continue to be a drag until we get it sorted out. And we know the true impact of the laws as it becomes effective. Where are you expecting the most discounting to happen . You know, when we had this group of ceos together yesterday and we talked about that. And i think they all recognize that its going to be very promotional environment. It takes promotions to get customers out of their homes, off the couches and into the stores, or at least off the couch over to the laptop to get on the internet and do some shopping. It will be very promotional. They know that. Retailers know that. They know customers expect it. So, theyre planning for it. Its going to be very aggressive and a number of them observed yesterday its going to be more promotional this year even than last Holiday Season because thats really the only thing thats going to get customers out and create that experience and excitement that gets them shopping. Right. And what about technology and sort of industrys trends. What is going to be the hot sellers at this point . Obviously, electronics is alleges ve always very popular. As new game consoles roll out, people are looking for big ticket items. Its been a few years since any of them came out. Theres a lot of excitement, particularly around the aficionados to get those. Hopefully, that will bring people into stores. Television sets and the whole range of electronics is really what drives a lot of the traffic and gets people excited. And creates those promotional opportunities that really bring people into the stores. And get them shopping over the whole weekend. Hopefully that will lead into a very good experience for the whole weekend. And you said it earlier, youre expecting a solid Holiday Shopping season. We are. Were still predepicting 3. 9 , which is better than a year ago. Its incrementally better. Last year we were 3. 5 . Were talking 600 billion. Our members are going to higher nearly 800,000 employees during this season. So, were trying to lead the economy back to a full recovery but we cant do it by ourselves. We need some help. Well leave it there. Matthew, good to have you on the program. Thank you so much. Thank you. Well see you soon. Matthew shay joining us. Future Health Care Premiums could go up or down. President obama is meeting with insurance ceos one day after his politicallycharged decision to let Insurance Companies decide if people can keep their health plans. Well bring you the very latest discussion and developments out of that discussion. And the impact on your Health Care Bill next. Also coming is government spying hurting u. S. Business . And why is the cia collecting Financial Data on millions of americans . Eamon javers is investigating. Plus, ill speak with former top military official who says were not ready for cyber war. General Stanley Mcchrystal, former commander of u. S. Forces in afghanistan. Tdd 18003452550 trading inspires your life. Tdd 18003452550 life inspires your trading. Tdd 18003452550 where others see fads. Tdd 18003452550. You see opportunities. Tdd 18003452550 at schwab, were here to help tdd 18003452550 turn inspiration into action. Tdd 18003452550 we have intuitive platforms tdd 18003452550 to help you discover whats trending. Tdd 18003452550 and seasoned market experts to help sharpen your instincts. Tdd 18003452550 so you can take charge tdd 18003452550 of your trading. Welcome back. President obama and insurance ceos still meeting at the white house to discuss surprise changes to obama care. John harwood, is it a good sign or bad sign the longer this goes on . John harwood, are you with us . John harwood is at the white house, but i do not think he can hear us reporter yes, john harwood. Welcome back to closing bell. Were still waiting at the white house for insurance executives to come out of the meeting. We dont know exactly what theyre going to say and what sort of business was transacted, but we don from what president obama said at the outset, that theyre trying to Work Together to figure out not just the fixes for people who had existing policies, but also for how to make people understand their options on these exchange websites, which dont know work. Heres the president. Because of choice in competition, a whole lot of americans who have always seen Health Insurance out of risk or out of reach are going to be in a position to purchase it. And because of the law, well also be able to provide them help even if they are still having trouble purchasing that insurance, but they have to know what those options are in order to be successful. Reporter all right. Guys, ive lost audio. I cant hear you guys, so im going to throw it back to you, maria. We got it. Thank you so much. John harwood at the white house. What could this mean to everyones premiums . This impacts more than just 5 of individual plans were talking about. Joining me to talk more about that is wendell potter, a Health Care Industry whistleblower after running cigna and also the author of obama care whats in it for me and jaime jamie court. Thanks for joining us. Thanks. As we await any information from these insurance ceos at the white house, wendell, lets me get your take on what the president said yesterday, with the Insurance Companies help, can you keep your plan. How do you think this plays out . You know, i think some Insurance Companies will look at this as a good deal because a lot of these policies are profitable for them and they didnt really want to stop offering them. So, i think well see some takers on this. I think others may not. At the end of the day, its a business decision for them. Theyll be looking to see what the Profit Margins are on these plans that have been discontinued. And if its efficient for them, i think theyll get back in touch with their policyholders and said, if you would like to stay with us for another year, can you do that. Others will say, you know, theyre concerned about what this will do to the exchange pool. And i think some may say it might stabilize it. Youll see mixed reactions, i think. Jamie, what do you think . Can they really make this change, recalibrate within 30 days . Well, i think they can do anything they want. We had two Health Insurers in california who didnt give proper notice and theyve been forced to extend for another 90 days. Its difficult. Its difficult because these are like big ships. They dont turn very easily. We were told by blue cross it would take 30 days to send out a letter. The real issue is that the insurers are holding the cards. Its really up to them whether they stop the cancellations and let people keep these old plans. And the thing is, under the aca, Affordable Care act, one thing that was forgotten was rate regulation. The cost to the consumer was never a factor. So, in half the states theres rate regulations. In other states, Insurance Commissioners have absolutely no say over what Insurance Companies charge. I think a lot of these Insurance Companies will say, well continue them but continue them at a cost. That may wind up driving people to the exchanges. I think for people with subsidized policies, theres only one answer, they have to go on the exchange. Thats about a third of the people who have been canceled. Theyll get a better idea. If they go to the federal exchanges they get the federal subsidies to buy is it more expensive its already more expensive. Than their prior plan . I dont think cancellations are the issue. I think the problem is consumers in california we had a Million People get a notice saying you cant keep your plan. By the way, in twothirds of the cases, plans will cost more and were not sure youll be able to see your doctor. The two things the president has to focus on is not the cancellations but its getting the premiums under control and making sure that doctors and hospitals that were in these past networks are in future networks. I think the public would be a lot less angry and wouldnt care about moving over policies if everything was more comparable. If the price was more comparable and network of doctors and hospitals was more comparable. What do you think . Well, i think for one thing, jamies correct, the Insurance Companies, if they do reinstate sthees policies, theres no guarantee that the premiums will be the same. One thing people need to know is that once the exchanges are up and running and working correctly, people can then determine whether or not their policies, even if they can stay in them, if its a good deal. Most people will, i think, be able to get a better deal, get better coverage at a lower premium. They just need to be able to figure that out. What would you call victory from todays meeting . Were waiting to talk to some of those insurance ceos who are in there with the president right now. What would make this meeting a success . It depends on who you would want the victory to be for. Im hoping it will be for those who are uninsured or facing policy cancellations. Again, the Insurance Companies will look at this from their own business perspective and i think some will say, this can be a win for them. Others will just say, it doesnt make any difference. But i think they will ultimately decide that they can offer these and also offer other policies that could be a better deal. That is hopefully what i think the outcome will be. What about you, jamie . Look, i think the insurers in the drivers seat. I dont think anything is going to come out of this meeting to change the frustration americans have faced. The only thing that will change is when states pass tougher laws. We have a valid measure in california where weve done that with auto insurance. We want to extend it to Health Insurance. I think the president has to focus on actually being a little tougher on the Insurance Companies in the states. Getting better laws to protect access to Bigger Networks of doctors and hospitals and making sure insurers wont charge too much for the policies. Because without premium protection, the insurers will charge whatever the market will bear. I think the Exchange Plans may be better plan, but certainly more expensive in better places. Whap consumers care about most is getting decent coverage at half the price. And at least most of the states arent getting that until we change the law. Great analysis. Appreciate your time. Dont miss the kudlow report with congressman fred upton. Join larry with his special guest. Is government spying hurting corporate profits . Up next, eamon javers is investigating the aftereffect of Edward Snowdens leaks on corporate profits and now word the cia is also collecting americans Financial Data. And then when a top military Commander Warns the u. S. Is not ready for a cyber war, you should be concerned. General Stanley Mcchrystal is up and he is coming on to talk to us about what we need to to. Bny mellon combines Investment Management investment servicing, giving us unique insights which help us attract the industrys brightest minds who create powerful strategies for a countrys investments which are used to build new schools to build more bright minds. Invested in the world. Bny mellon. Sometimes they just drop in. Always obvious. Cme group can help you navigate risks and capture opportunities. We enable you to reach Global Markets and drive forward with broader possibilities. Cme group how the world advances. Welcome back. Up arrows on wall street this week. In fact, recordsetter, dow getting closer to 16,000 and at an alltime high tonight. 85 points higher. Dominic chu running through the big movers. Were seeing some big moves in some of the worlds Biggest Companies today. Now shares in the Worlds Largest oil company, exxonmobil, rose about 2 after Warren Buffett revealed a 40 million share stake in the company, worth about 2. 8 3. 8 billion. Apple falling after showing carl icahn owns fewer shares than initially thought. He said in a letter to ceo tim cook last month he owned around 4. 7 million shares, but in an s. E. C. Filing last night he disclosed he owned a million less, about 3. 9 million shares. We saw a spike in valero after epa eased standards for gasoline. That means Refining Companies like phillips 66 and valero wont have to spend as much in ethanol, improving those Profit Margins so refiners showing midday moves today. Big movers, thank you so much. Yesterday eamon javers told us all about the leaks about u. S. Government spying maybe taking a toll on corporate profits. Today we learn the u. S. Is also collecting our Financial Data. Eamon javers with the story. Heres another industry to Pay Attention to the potential impact on bottom line. Wall street journal reporting this morning cia is monitoring transfers, Money Transfers at western based financial firms, Western Union in particular. Wall street journal saying a lot of these transfers include data of american if theyre transferring money overseas. They dont include entirely domestic transfers but overseas transfers is fair game under the patriot act. We reached out to learn more about this. One intelligence official told me today saying any activity conducted by Intelligence Community pursuant to orders issued by Foreign Intelligence Surveillance Court would of course require strict compliance with the law. Theyre not confirming or denying this program exists. They say if it exists, there would be certain restrictions to it. Let me bring you those restrictions as well. They say minimumization procedures to protect u. S. Personal information. They would mandate persons given access to this data being appropriately trained. They would prohibit searches of data for other than authorized purposes and they would limit how long info might be retained by the Government Agency that is retaining it if, in fact, its retaining it. They would not, again, confirm what was in the wall street journal this morning. The journal reporting the cia has access now to that Money Transfer data. Thats another industry that might want to watch out now for some blowback from customers who say, wait a second, is my data not as private as i thought it was . On, on the other hand, do people just assume if theyre transferring money overseas, somebodys watching . Eamon, thanks much. Want to get reaction to all of this from a man who knows a things or two about security, general Stanley Mcchrystal. Good to have you on the program. Good to be here. Whats your take on these leaks and the fact that the government is doing all of this . Well, i think one of the things we need to understand is our potential foes today, particularly terrorist groups, are not rudimentary elements that pass cash around to operate in 1960s technology. They move money, they move information and other capabilities using every bit of the modern globalization system we enjoy on a daily basis. And to defeat them, to deal with them and to understand them, youve got to be able to operate there. Clearly within the law, but youve got to be able to be cognizant of whats happening even in all elements. So, our security then does depend on getting this kind of information . Absolutely. Within limits, we have got to be able to see things that used to happen physically and now happen digitally. Let me ask you this, because theres so much talk over the backlash over the nsa spying. This week Cisco Systems reported earnings. John chambers on, the ceo, and he disclosed that its actually cost them business overseas. Can we expect more backlash . Are we actually soing an impact of this nsa spying on our Companies Operating around the world . I couldnt speculate on whether cisco or a company would lose business. I would say one of the things we do need to understand is how american actions are perceived around the world. Everything we do or dont do is perceived through a lens of whatever individual andn whatever country is doing it. Everything from cyber operations, collection of intel or our diplomacy is viewed differently than us in our shoes. In terms of preparedness, you have said in the past u. S. Is not ready for a cyber war. What would you like to see done . And what are the threats or the risks of a cyber war . I think to build a imaginary line of Cyber Defense is impossible. The change in technology is constant. So, what we have to be able to do is to be able too adapt to a threat that continually morphs. I dont think well ever get a perfect defense because theres so much to defend in america because everyone is dependent upon different parts of the Cyber Infrastructure in our daily lives. An interruption of things as basic as our banking or our Library Cards or our electrical system would be very, very upsetting to us. I think we have to assume is we cant have perfect defense but be aware and constantly adapt. I realize the bad actors out there arent doing things in traditional ways, but how vulnerable are we to a cyber war . I think our basic defense, National Security agency, is very, very impressive. If you think of a cyber war, one of the things that made nuclear war unthinkable was the ability to strike back at our foes. Unfortunately in a cyber war, you may not be facing a nation state to whom you can threaten, hold at risk. You may be facing someone whos a Splinter Group operating from des per rat locations and no way to strike back at them because they have very little to lose. When you say cyber war, that connotates computer, technology, but we could also see wars or, you know, threats coming from our water, our food. We every part of our society, because we are so connected now, if you think about it, our transportation, food, communication, interruption of any one of those, or even make it questionable, is a challenge to us. So, defense now is different than it probably once was. And talk to us about defense and the military service. In 2012 you raised alarms really for the first time in history. Less than 1 of americans are saving are serving in our nations military. This is really amazing, that this is the number. Youre aiming to curb that. Talk to us about your franklin project. Absolutely. What i think we have in america is a need for a greater view of citizenship. And what i mean is, over time, citizenship has been narrowed to believing that you have a number of rights as a citizen and very limited responsibility. Youre responsible to vote, and many people dont. Responsible to pay taxes. What i believe we should do is increase a sense of citizenship that has a balance of more responsibilities and more rights. The concept of the franklin project is to start early with individuals and give every Young American the opportunity to do a full year of national service, not military service, necessarily, but conservation, education, health care, and get the same sort of respect that someone in uniform gets, and yet also get the same satisfaction, the same kind of value you get for contributing and the opportunities that come with having served. Yeah, i love what you said, because its serving. Its not necessarily military only. Exactly. But i did think as you were talking, israel, every citizen has to serve in the military, right . Would that be something that you think is worth while . I dont think we need everyone to serve in the military but i think we need everyone to serve. In israel one of the great things they have theyll argue about anything but service. When they neat, the conversation often begins with, where did you serve . What about in america if you young people meet and someone says, where did you serve . One says, i served in city year. Another one i served in ameri corps and one in the marines. They have something for a year of their lives they served and they grew from it. The best product is the individual. I love what youre saying. Congratulations on the franklin project. You know the inner workings of washington. What is your take they cant make decisions on anything and we cant seem to get anything done . I think its a question, really, of citizenship and leadership. I think weve allowed ourselves to be polarized at two ends of the spectrum. For some reason were willing to accept a lack of doing anything. Accomplishing a compromise. I think thats something that is really inherent in citizenship where you have a joint responsibility to get something done. And i think what weve got weve got to take a hard look at the functions from governance to education and what we force ourselves to act. Very frustrating. General, good to have you on the program. My honor. We appreciate your time. General Stanley Mcchrystal joining us. What will move your money next week . Ball Street Market analysises are up next. Gamers ready to do battle. This is all about committing to one machine. Right. Lets all get ps4. No, the xboxes are going to be better. Theyre not better. Just more expensive. Sony versus microsoft. Whose gaming console will people shell out big money for . The gaming wars could get ugly. [ tires screech ] [ male announcer ] 1. 21 gigawatts. Today, thats easy. Ge is revolutionizing power. 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You need a permit. To be this awesome. And you. Rent from national. Because only national lets you choose any car in the aisle. And go. You can even take a fullsize or above, and still pay the midsize price. aaron purrrfect. vo meeeow, business pro. Meeeow. Go national. Go like a pro. Welcome back. Seasons new ps4 is out of the box and gamings latest and gritest console. But the xbox one is right behind. Both in time for the holidays. Josh lipton sets up the gaming battle royale. Over to you, josh. Yeah, maria, Microsofts Xbox one hits stores next week. The battle between microsoft and sony here is really just getting started. How these two consoles actually compare, the specs are actually pretty similar. One big difference, the ps4 will retail for about 100 less. Soeaso sonys banking on that lower price, attracting more of the hard core gamers. I think sony, you know, if it wants to get back to make its own predictions for where it will be in a couple of years in terms of profitability, the ps4 platform has to succeed. Morgan stanley expects sony to sell around 3 Million Units by the end of the year. No matter how you look at it, sony has held a dominant lead in terms of hardware units shipped to retailers this year. Playstation consoles accounting for 55 of the market in 20 13. Microsoft comes in a distant second at 30 , but if you take a look at the longterm battle between sony and microsoft, youll see the consoles are pretty evenly matched. Both the ps3 and xbox 360 have sold 80 Million Units over their product cycle. Analysts say they peg the console industry at 10 billion. This is a battle neither one wants to lose. Maria, back to you. Big business on the line. Josh, thank you so much. Next week, will we see nasdaq 4,000 . Our market panelists tells us what to watch for. Avoid bad weather. [ whispers ] get eight hours. 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And if you switch, you could save up to 423. Liberty mutual insurance. Responsibility. Whats your policy . Market melt ups, all week long in the 3 00 p. M. Hour this week, what about next week, closing in on dow 16,000 and nasdaq 4,000, will the markets hit key levels next week . We bring in the pros, talk about what to watch for next week. Good to see you guys. Kevin, youre up first. Do you expect to see dow 16,000 next week and nasdaq 4,000 . And what do you want to be prepared for . Sure. Why not. Were within a half percent of both of those benchmarks, so to think we get at least one of those indexes above those threshold levels, i think is certainly within reason. And i think you have to watch whats going on with the fed. Of course, we have been hearing confirmation hearings, as far as the new fed chair is concerned, but also, remember, were going to get minutes next week, ben bernanke will be speaking down in washington to the National Association of business economists next week. And also look at the size of the feds balance sheet. Remember, with earnings not up so much, with bond yields up, what has been moving stock prices . The feds balance sheet, up about 35 in the last 12 months. And lo and behold equity indexes up approaching 30 in case of the dow, 40 in case of the nasdaq, keep an eye on the fed and what they have to say. Chris, youre up. What about you do you think these numbers are sustainable . Will we see dow 16,000 and nasdaq 4,000 . Well, maria, i think its going to depend not only what kevin said, with the fed. But also flash pmis come out next week across the world. I think you have chinas flash pmi first, wednesday night, and then u. S. And europe thursday morning. And i think what Market Participants will want to see is that sort of burgeoning Global Recovery we have going on in the leading indicators will be precipitated, the october data was slightly better than expected. And it showed expansion across those three regions, i think we need to see that. You know, our view is in the very, very near term, the market has an excessive level of optimism. Which means that for the next days, weeks, months, you know, the going might be tougher than it has been. But i think its really important to note, that this level of optimism in the market from our back testing suggests actually the likelihood of the markets would be higher three months from now, is actually slightly better than average. Its a little bit counter intuitive, but actually this level of optimism, longer term is usually a healthy thing for the market. We think that the markets should be able to break through those levels eventually. All right. Well leave it there. Thank you. Well watch that next week. Well see if the market breaks. And by the way, while i have you, do you want to be if you do believe, as you guys put it, that we will see dow 16,000, what are the groups that you want to be exposed to . I think energy makes a lot of sense. We saw an acquisition by Warren Buffett in that area. There is value there. And i think Just Technology also has its share of attractive companies, with good balance sheets. Keep focus there. If the Global Economy recovers, you want to belong to those groups. Energy and technology would be on my list. Okay. And i guess, maria, from my end, i would answer that question geographically versus sector wise, we still like markets outside of the u. S. , particularly europe and japan. Simply because we think valuations there are just a lot more attractive than in the u. S. I think for u. S. Based investors or u. S. Focused investors, we still want to stay on the cyclical end of u. S. Stocks versus the more defensive side. All right. We will leave it there. Chris, kevin, thanks. Well see you soon. Appreciate that. Have a good weekend. Take a short break, and then more breaking news, back in a moment. Because with power ports. And wifi. And inseat entertainment, for everyone on board, now when you fly, time flies too. Flight Attendant sir, were about to land. vo were adding a brand new plane, with all this, every week. Its just one way were building the new american. Welcome back, breaking news on jpmorgan, back to headquarters and dominic chu. Thats right. What we have here is a 4. 5 billion settlement offer from jpmorgan, this is related to representations of warrants, youll hear it referred to as reps and warrants for Residential Mortgage backed securities. Basically they are setting aside, settling up 4. 5 billion to help alleviate losses from bondholders, who have invested in bonds issued by jpmorgan, by chase, and by bear sterns during the years 2005 to 2008. Again, Residential Mortgage bonds by those three entities. Its important to note here, this does not cover any of the Mortgage Backed securities issued by Washington Mutual, remember, jpmorgan bought both bear sterns and Washington Mutual during and in the aftermath of the financial crisis, a 4. 5 billion settlement on the table for these particular Residential Mortgage backed securities. The firm also, i will say, feels as though they are appropriately reserved for this and any remaining litigation matters going forward, maria. Back to you. Thanks so much. Dom chu, we appreciate that. Well get to melissa right now. Thanks for joining me on closing bell. Have a fantastic weekend. See you this weekend on on the money. Join us. And catch my interview live here on closing bell. One of the Worlds Largest investors. First ahead of all of that, fast money begins right now. Heres melissa and the crew. Live from nasdaq markets in new york citys times square, this is fast money, americas post market show. Im melissa lee. A record day for the markets. The dow and s p 500 closing at all time highs the third consecutive day. The dow touching 15,900 for the first time ever. The s p seeing its longest