The markets love that. But to explain the option, the Nuclear Option and how it relates to Janet Yellens likely senate confirmation, we head to peter barnes on capitol hill. What next . Reporter thats right, liz. The Banking Committee voted 148 to move her nomination on to the full senate where it looks like she will have an easier time passing. We assumed that she would get enough votes to get final confirmation by the full senate, but then today the Senate Approved the Nuclear Option which was to eliminate the filibuster for the president S Executive Branch nominations and federal judicial nominations except for the supreme court. Democrats and the president complaining the republicans have been using the filibuster too much to block his key nominations, but republicans saying, hey, we this is part of the chicks and balances checks and balances that were in the constitution and that democrats and the president are just trying to change the conversation from obamacare to something else. Take a listen. The obstruction weve seen from republicans against president obama has reached new heights never dreamed of, never dreamed of, never even come close in the history of the country. This was nothing more than a power grab in order to try to advance the obama administrations regulatory agenda, and, you know, they just broke the senate rules. In order to exercise the power grab. Reporter so thousand these types now these types of nominations will require just 51 votes to clear the senate, but because the fed is an independent branch of government, i do have a couple of emails and calls out to confirm that yellens confirmation her follow nation would fall under this new rule. As soon as we get the answer, liz, well be with back to you. Liz i know youve been watching the markets too, peter, because you have eyes in the back of your head. We have an unbelievable rally. Those who are long the market, pensions and 401 k s and portfolios, youre loving this right now was the dow because the dow is on track to finish at its 40th record high of the year. Been there before, but just not closed there. Two member stocks of the dow 30 be also riding the alltime high wave. Lets go to Nicole Petallides for more. Reporter well, this is an exciting time on wall street for everybody whos watched it from when it crossed 10,000, the financial crisis, back up to these record levels that we set day after day here on wall street. So were sitting here at 16,000 and a couple of names, Johnson Johnson and travelers, two names im focusing on closely, hitting record highs here. For Johnson Johnson it is the Third Straight record high in 60 session its 62nd record high of this year which almost makes 40 for the dow seem simple and trivial. Looking good there. And also, by the way, the Health Care Sector overall has outpaced so many others in the year 2013. And then were watching travelers looking at its 39th record close today. So a monumental day here in history, particularly if we close above that 16,000 mark. Liz can i also say weve got to give props to intel. I know weve been point toking this out pointing this out, but their ceo saying they would quadruple, double their chip sales and shipments, and the fact is they do not make these announcements unless they have the orders, nicole, correct . Reporter yeah. I would say, i mean, this is a very bold move by intel. Its a great performer this year, but its certainly middle of the road for many dow stocks. We will see if they can expand the way hes been alluding to. Liz lets bring it to the traders on the floor of the new york stock exchange, the cme group and nymex. Teddy weisberg, looking at the action today, would you guess this is yellen . I guess it doesnt really matter the reason, but we did get better than expected firsttime jobless claims numbers as well. And yet you have this conflicting opinion from the targets of the world that say were a little concerned about the Holiday Season. Well, you know, theyve been throwing water on could water on this market, liz, for months if not going back a couple of years. When you think how far weve come in a relatively short period of time whether its this year or all the way back to march of 2009, i mean, it wasnt that far back. The fact is the markets continue to climb these walls of worry, and what is missing again today . Here we are at dow 16,000. The volume remains very anemic. So, yes, a rising tide is floating some ships, no question about it. Not floating all the ships, and there are plenty of doubting thomass out there. I think for the most part perhaps theyre right, but you cannot fight the tape, and the momentum clearly telling us that the markets going higher and the shorts, the shorts are just getting liz theyre getting killed. I mean, they are getting killed here. And, dan, look at Green Mountain coffee roasters. They had a tough time after the bell, but today their stock moves higher x thats a heavily shorted stock along with let me just quickly check tesla, thats moving higher. One of the haley shorted stocks out there heavily shorted stocks out there. How many times have we said or we listened, and we shouldnt have listened. But maybe now is the time where a mark faber of the doom and gloom report, if i had a dollar for every time he came on the and he used the word crash, i dont like that because you cant throw it around, is coming, and it hasnt. Well i mean, even a broken clock is right, you know, twice a day. So you have to put all that stuff this the background and think about whats going on. Finish if you look ott our economy and what weve been doing, the one piece of the puzzle thats been a little slow so far has been employment. Now, the number today was decent, so i think the markets getting a little more positive. If we fall back, im not going to get panicky. Ill buy the dip. As teddy said, theres a lot of momentum, and theres no fundamental change to make me change my view right yet. Liz ill tell you what was fundamentally changing, jeff grossman, suddenly we blinked and went from 92 and change to t 95 a barrel for crude oil. Does this markedly sort of pilot higher and deeper on the target or walmart news that were a little bit worried about people opening their wallets for spending . The truth of the matter is what happened today is related to a perceived disruption in one of the big refiners down in the gulf right now, and that gave a little impetus to the gas leap. As ive said in the past, the gasoline has been and continues to be the leading indicator here for the energy complex. We were hanging in the mid 93 to 94 level which is okay. We were digesting that. And todays news really took the gasoline off, the gas cracks have blown out again. As i always use that, again, as one of my indicators, and that gave us our impetus. The crude has not really broken out. It got right up to the top of the channel, right into the resistance level. So its not a full breakout by any means, but today, again, it was a sympathetic move up with the equities and, of course, like i said, the news that came out was quite, you know, intriguing for the upside thinking. Liz yeah. I mean, very. More than a buck as a jump there. Jeff, great to see you. Dan, nice to see you. Teddy, youll get nothing and like it. [laughter] we love our teddy weisberg. Good to see all of you. Weve got the closing bell ringing see, teddy liked that. Youve got to pay special attention to teddy, hes the giant of the industry. 52 minutes before the closing bell rings. Weve been talking a lot about activist investors who can be with annoying or upsetting to companies, or they can help companies and shareholders. Fannie mae and freddie mac now have an activist investor of sorts and, no, its not cal icahn or daniel loeb. This is a guy who ran for president several times. Only Charlie Gasparino, our superstar chief correspondent be, has the story. Charlie breaking it once again. And she was the integral part of launching one of the most Transformational Companies on the planet. What mark a zuckerbergs sister thinks of the frenzy she helped create, and now are we all addicted to our tablets . Is it ruining our lives this a certain way . She has some surprising advice shes going to give you on what to do, should you be grabbing that phone, that tablet or putting it away . Hi honey, did you get toaster cozy . Yep. Got all the cozies. [ grandma ] th n fedex one rate, i could ll a box and ship it r one flat rate. So i kn untilt was full. Youd be crazy not to. Is tt nana . [ male announcer ] fedex one rate. Simple, flat rate shipping with the reliability of fedex. I need a newntouncer ] investment pn. One rate. I need to rethink the core of my portfolio. Ishares core etfs are lowcost funds. So you can keep more of what you earn. Get started with the new ishares core builder. Design a personalized plan that can help you achieve your investment goals. Ishares by blackrock. Call 1800ishares for a prospectus, which includes investment objectives, risks, charges and expenses. Read and consider it carefully before investing. Risk includes possible loss of principal. And this park is the inside of your body. See the ecial psylliumiber in metamucil actually gels to trap some carb to help maintain healthy blood sugar levels. Metucil. 3 amazing benefits in 1 super fiber. Liz the power mover of the hour is micron, the chip maker rallied more than 6 after activist shareholder David Einhorn singled out the company as his favorite long bet at an investment conference. He sometimes takes short bets like on Green Mountain coffee roasters, but hes taking a long view. Whats behind this newfound love . Microns chips used in smartphones and video games will boost its net next years earnings. Speaking of video games, stay tuned. We are going to display and demo the brand new xbox 1. Got the guy behind it coming up in just a minute. Now, many of you are invested in or tempted to invest in social media stocks. The likes of facebook, linkedin and, of course, twitter. Even if youre not invested, no doubt you use some of it. But my next guest with zuckerberg as a last name, no less says social media may be affecting us in a negative way. Shes making a stunning recommendation to fix that. Joining me now this in a fox business exclusive is randi zuckerberg, former facebook executive and, of course, the sister of mark zuckerberg. Great to see you. Youve just released two new books about the Impact Technology has on our lives. One of them is called dot. Complicated. But in a very interesting twist, you basically also released at the same time a Childrens Book called dot about a little girl whos obsessed with technological items like iphones and all kinds of things, tablets. But lets talk about what youre saying this here, and youre in essence saying, well, youve got a front row seat in what has been the technology and social media revolution. Youre now saying you want to move that seat back just a bit. Why . So, yes. I have two books that are out the same day. When i talked to hard per collins about it, they said no author had ever put out a Childrens Book and an adult book on the same topic, same day. And i felt, you know, technology is such a universal topic right now, were all addicted to our devices. Now, theres some pretty staggering stats that i uncovered in the book. 40 of women would rather give up sex for a year rather than part with their mobile device for a weekend. [laughter] 50 would rather spend a night in prison than be without their cell phone. Liz what . Okay, that would not be me. Staggering. And, actually, 50 of women said they would rather lose their Engagement Ring than lose their phone. Liz oh, come on. Wait a minute, randi, is this partly you and your brilliant brothers fault . People have gotten addicted to facebook, to twitter, and theyre doing what can really only best be with described as mindless psychologicalling. Out of the scrolling. Theres no down time almost, right . Youre absolutely right. In fact, i think the best thing about tech and the worst thing about tech, its the same thing. The fact that were always connected. Now, on the plus side it means that we can do business from anywhere and still stay in touch with our family, our friends. On the negative side, though, were constantly bombarded by information; emails, texts, Facebook Messages from people we havent seen in years. How are we expected to give the next creative idea to our business if were not giving ourselves time without distraction . Liz when you think about twit e its 140 characters, zynga, its pixlated cows. I fail to see the excitement, but some people are completely into it and, therefore, were not making connections with real people, and that takes it in a way to your Childrens Book. But what is the recommendation here, randi . How do you tear yourself . Were all guilty. Im holding up my old school blackberry, but be, i mean, im checking this thing all the time. Mostly for work, but partly if i have down time, im looking at all kinds of things on it. Of course. I talk to all kinds of experts when i was working on dot. Complicated, and they said actually there is dopamine thats released in your brain when you get an email or text message, so it makes it addicting to check your phone. The average person checks their phone over 160 times a day, and most of that is mindless scrolling. So i think the key is to really be mindful about your devices, to make sure youre giving yourselves at least a few completely unplugged hours a day and on the weekend especially youre blocking off a large chunk of time to unlug to either spend with yourself, think about your business, with your family and give yourself that freedom. Liz amen. But youve got a little child, children and the ipads, i cannot believe. My kids are arguing over ipads, and we have three of them in the house. And a nexus. And what do you do with kids . Yeah. Liz i have kids and, again, weve got the xbox people coming up, and its just a fascinating device, and well be showing it to people. Aside from the fact that they can do things like math problems which is amazing and khan academy is online, im worried that theyll be playing sports games instead of actually playing sports, randi. Yes. Well, you did hit on a few things there. I think, number one, any parent you talk to, screen time is one of the Biggest Challenges that they face in their households. And youre right, theres a lot of wonderful things that children can do with technology. Theres great interactive adaptive learning. Theres incredible creative apps to promote music and art. But you are right. So a few suggestions that i have. One, give your children a digital allowance. You give this them a financial allowance probably, tell them that they have a certain amount of minutes or hours of the week that they can allocate however they want. And if that fails, theres some great fun gadgets out there. Apple makes an airport that actually can turn off the wifi to select devices in your house at certain times, and there is even a cell phone lockup that you can buy on amazon or ebay, and you can actually take peoples phones and gadgets, lock them away, and it wont open until the timer is up. Liz i love the book, and i love the first quote in it. And it was something, ironically, that chris rock the actor and comic had tweeted. Yes. Liz and we can put it up, but in essence, he says you only live once, and then he says, so dont forget to spend 15 hours every day on the internet desperately searching for the validation of strangers. [laughter] if that doesnt in a very ironic way say it all. But, you know, speaking of irony, it was recently reported from your own brother that maybe teenagers are pulling a bit back from facebook. But theres also snap chat which refused to be bought by facebook. All of these things, one thing gets hot, and the next thing fills it in. Are we damaging ourselves in some way, shape or form by constantly jumping . But you cant stand in the way of technology, can you . Youre right. But i also think, you know, young people, they always want to be doing the hot, cool thing. As soon as their parents get on the service, theyre on to the next service. [laughter] i know even when we were kids it was always, you know, one day you were talking in code, the next day you had a new journal. Now kids are doing that with technology. So the challenging thing for parents is that i always tell parents that they need to be on top of the latest sites that their children are using. They dont have to be on all those sites, they at least have to understand, though, what those sites do, how they work. So it just makes it more challenging for parents to have to keep up with the frenetic pace of tech. Liz the book is called dot. Complicated, and it will help your life when it comes to being addicted to these devices that, ironically, comes from somebody whos done very well through social media. Well see you in davos, i hope . Yes, absolutely. I really look forward to it. Liz well have you on the show. Randi zuckerberg, the author of dot. Complicated and dot. This is fascinating stuff. It really is. Because we all are guilty. Come on, admit it. Closing bell ringing in 39 minutes. What do ralph nader and zombies have in common . Fannie mae and freddie mac . Outspoken activist advocate ralph nader has called for the government to pay its duties to shareholders whom he says have turned into lifeless zombie bees. Whats his latest demand . Charlie gasparino has the collusive details, next. And the battle of the consoles is on. First sony releasing its newest play faith 4 last week selling more than a Million Units in just 24 hours after the launch. Now its Microsofts Xbox, onetime shine. Can it match playstations success . Microsoft xbox chief marketing and Strategy Officer bringing some friends with us. Wait until you see the demo we have in store for you. Oh, yeah, the other guys didnt do that. [ tires screech ] [ male announcer ] 1. 21 gigawatts. Today, thats easy. Ge is revolutioning power. Supercharging turbines with advanced hardware and innovative software. Using data predictively to help power entire cities. So the turbines of today. Will power us all. Into the future. Into the future. 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. My dna. Me. Every piece is important. This part. Makes my eyes blue. I might have an increased risk of heart disease. Gallstones. Hemochromatosis. Ill look into that. The more you know about your dna, the more you know about yourself. Now i know. Know more about your health. Go to 23andme. Com and order your dna kit for only 99 dollars today. Learn hundreds of things about your health at 23andme. Com liz well, it looks like former president ial candidate ralph nader may be taking a page out of all peoples book, carl icahns playbook. Did you ever think you would hear that . Charlie gasparino has the exclusive details. Ralph nader, activist investor. Heres what we know, more details will be coming out tomorrow, but nader is telling or his people are telling the Fox Business Network hes going to hold a press Conference Tomorrow to basically oppose the sort of plans that are in congress right now. Warper and i think whats his name yeah, senator warner has a bill essentially to dismantle fannie and freddie. Ralph nader is a shareholder, he thinks thats bad for the shareholders, so hes going to come out guns blazing in a press conference and say why this is bad, why its probably illegal, why it violates shareholder rights. Now, theres always an ulterior motive when youre dealing with nader. I think part of the reason he doesnt want the dismantling is not because he owns shares, which he does, but its also because, you know, he thinks keeping them around is good for consumers. Liz they are governmentsponsored entities or gses that have actually, quote, helped people get mortgages. Sometimes. And also blew up and led to the blowing up of the financial system. Liz they got a big bailout too. Of course. And what senator corker and senator warner would say the two people sponsoring legislation thats making its way through liz bipartisan. Bob corker is a republican, warner is a dem, what they would say is what fannie and freddie does is buying mortgages, packaging them, selling them, buying them from banks, that process essentially created the mortgage bubble. And the eventual bursting caused the financial crisis were still living with today. His point is now that you bailed them out, dont kill them, we need them. And by the way, im a shareholder. The kind of interesting thing is i never thought ralph nader and Richard Perry from Perry Capital would be on the same page, because they are. [laughter] Richard Perry, as you know, is one of the distressed investors in this, and hes against, hes against what theyre doing. Liz well, is ralph nader supporting the gses . This may be a rhetorical question, but because he feels it helps the little guy . I think theres listen, im sure ralph naders a very nice man. I do think its a publicity stunt. Weve asked how much he owns of fannie and freddie, he apparently owns something, thats what he says. We dont know exactly what his ownership stake is. I dont believe hes a material shareholder or like a 5 . I dont think hes doing what a carl icahns doing. I dont think he has the money for that, to be honest with you. But thats his publicity stunt to get me to talk about it which is the broader issue. For all its ills, fannie and freddie has done some good, that what he would tell you. We should point out that fannie and freddie cost tax pay questioners taxpayers gazillions, hundreds of billions of dollars im assuming is not far off. The bailouts of those two entities cost taxpayers a lot. They contributed mightily to the financial crisis, buying up the mortgages. And over the years being prodded by congress and by the president , by hud to buy more subprime mortgages. Liz well, Mike Milliken of the Milliken Institute spoke specifically about this just two days ago and says that the government has got to get out of the business of helping people buy homes because it becomes very, very artificial. Well liz and he said the actual value of each americans selfworth, net worth has gone down. Because heres why, because in the old days when you bought a house, you could actually afford buying a house. Now you have to buy you get some crazy, you know, nointerest loan to buy house. My dad bought a hose, bought a very cheap house, small house. We moved out of an apartment, he bought it for Something Like 16,000. He had the wherewithal to put down 20 percent, and he paid it off. My dad was out of work throughout the 1970s, we never missed a mortgage payment, you know . He would find something, and hed be able, you know, he bended and drove a cab, but he still made that mortgage payment because we lived within our means. That was liz before they helped people. When you help people, guess what . You actually drive the price of the homes up. Liz hurt them. It makes it more unaffordable to buy a house. Liz its fascinating to see that ralph nader actually invests in stocks. That is a vise to me. Its going to be an interesting im assuming that youre going to try to book him for tomorrow. Liz we love ralph nader. Hes come on the show many times. He and asman, i think, are friends to. Oh, i doubt liz they are. Absolutely. Charlie, thank you. How about [inaudible] i had to work it in. Liz Charlie Gasparino breaking it once again. Closing bell and breaking my heart once again 29 minutes. Look at this rally, whether its better than expected jobless claims numbers or Janet Yellens approval at least by the senate Banking Committee there is no denying we are in massive rally mode. Up 108 points. Within striking distance of the highs of the session. The nasdaq better by 48, s p jumping nearly a percent. Guess what else is jumping . Interest and excitement about the latest xbox set to launch at midnight tonight. But is there any way it can top sonys blockbuster playstation 4 debut last week . This is the stuff that big corporate battles are made of, but weve got xboxs chief marketing and Strategy Officer after the break with a whole host of its friends to show us how it works. [ female announcer ] tide pods threeinone detergent. Pop in the drum of any machine. To wash any size load. It dissolves in any temperature,e, even co. Tideod pop in. Stand out. Liz so were all looking forward to some hold lay cheer holiday cheer, but some retail giants are looking at what might be a dreary holiday. We do have a retailer coming up, im a little concerned, though, that i may be out of my element in just a minute. So stay tuned. You have to stay tuned in just a minute for this, but you get to your report first. Reporter i wanted to talk about some of the retail names we know so well. Target today, right now, is over to 3 at 64. 38, and target is saying what many of the retailers are saying, theyre cutting guidance, theyre worried about the holidays. Target came out with earnings that were weaker than expected. They also showed some concern about the consumer as taxes have been on the rise and uncertainty about unemployment. And this is target that said that. Im not saying this, this is what they said. Weve also watched dollar tree. Their sales increased but really did not do as well as the analysts thought they would. So were watching walmart and kohls, all today now looking into the Holiday Season as we may see a drearier holiday than expected. Of course, theyre all beefing up, and theyll be hiring and getting ready. The question is the promotions and what does that that do for their margins. Thats the kind of stuff were going to be covering. Back to you. Liz nicole, help me ive been taken over a zombie took my seat. [laughter] laugh get out of my chair. [laughter] get out of my chair. Reporter oh, my gosh, thats gross liz i could take her on. Get out of here. [laughter] dont mess with the redhead. Yeah. Its xbox day, okay . Can i just say they brought in some pals, because theyre gamers, and they want to have fun. And it is a huge day as theyre waiting for midnight tonight to roll out the brand new xbox. This is Microsofts Xbox one. Of course, its been one week is since the massive debut of competitor sonys playstation 4. They had long lines outside of the Standard Hotel the manhattan, and what did they get . They sold more than one million consoles in less than 24 hours, but now its microsofts turn to shake up the gaming market. Xbox one set to launch at midnight, but will it have as much success . Yusuf mehdi is about to say, oh, yes, chief marketing and Strategy Officer. You know, its not a good way to make friends with me by bringing in zombies. Its the gaming business. Weve got to have some fun, right . Liz theyve taken over our entire tuesday owe. They are studio. They are having so much fun. Everyone tried to, you know, take their weapons through security [laughter] theyre much tougher than that. Now, these are, obviously, gaming characters, right . Absolutely. Liz tell us as you bring those to life how its going to be a better experience on the screen for xbox one. Well, part of its fun, but part of it is the message which is when you play these games, its oing to feel like youre playing in a movie. Some of the characters are these are the folks who are going to get to play tonight at midnight, roman soldiers, zombies in dead rising iii, its really going to be an immersive experience. Liz weve got it set up here, zombies notwithstanding [laughter] theyre almost more interesting to look at. But here it is, the brand new console. And lets talk about it. This is the game thats a big racing game. Just real quick, this is your home screen. You can personalize it for you, so you can sign in, thisll be, for example, stuff i can pin what i want. First time ever you get a personalized tv experience. These were the things you were doing last, and you see the stores where liz oh, there are gladiators. As you want to see what one of the games look like, here is our first class racing game, one of the most visually stunning games, youre driving 212 miles an hour in a mcclaren p1. Liz listen to me, make your case because ive got two choices right now. Ive got the brand new playstation 4 thats 399, ive got you guys at 499, and ive got watch my christmas and hand country budget. Hanukkah budget. Make your case as to why you guys should be the choice. Yeah. Well, look, first of all, its a great market. A billion play games, its a great market for us to grow. We do more for that price, which is we do the best gaming system. Weve got a lineup. 22 games, ten exclusive available tonight. And were also an allinone entertainment system. In addition to gaming, you can watch live tv, you can do fitness, sports, music. We bring a complete entertainment liz what does snap mean . You can take your screen and literally snap to the right so you can be, for example, playing a game and watch a video to help you play the game. Liz okay. Because were not all too distracted like Randy Zuckerberg just told us. Look, this is fascinating to me. You obviously want to be a whole entertainment system. Does it work with other strategies within microsoft, say skype, bing, etc. Absolutely. So i think xbox one is probably a flagship for microsoft that brings a bunch of things together. Youve got the cloud, you get skype, you can do fully hidef liz okay. Old games on the old xbox 360, do they still work on the new one . They dont work on the new one. Liz im going to kill you [laughter] this is what i hear from people whose children have them, this is expensive. Heres what we do thats great. We let you through a cable plug your 360 into your xbox one so you can still play your old games and few ones. Liz can you beat what ps1 has sold . Were going to find out tonight. Weve had the biggest preorders weve ever had, more than a factor of two to one versus 360. Havent given out specific numbers, but were launching 13 markets, so were launching more globally and to a pretty big demand. I think youll see millions and millions of people using it this holiday. Liz microsoft up about 33 over the past year, no doubt xbox is a huge part of that. The mar gyps will be okay. Yeah. I think we as a business weve been making profit for the last couple years, we think we have got a great value prop and a great opportunity to deliver to people. Liz they better never try and steal my anchor chair again. You tell those guys, theyre just unbelievable you allowed the swords through security. Liz i did. i got the swords through security because our crack security team, rightly said, kept them out until i said, its hollywood. Thank you very much. Liz yusuf mehdi, xbox chief marketing and Strategy Officer, and the gladiators and zombies getting along quite well. Weve got some breaking news, a u. S. Jury just awarded apple 290. 45 million in that patent damages suit in the retrial with samsung electronics. The stock moving up just a percent right now to 520. 47. Apple had requested 379. 8 million, maybe thats why were not seeing such a significant jump. Samsung, however, argumented it should only have to pay 52. 5 million. Apples stock did not get nearly what it wanted, neither did sam supping, but its not exactly split down the middle. Stocks holding their gains after janet yellen moves one step closer to becoming the next head of the federal reserve. Weve got one money manager who says nothing, not yellen, not anything is going to stop this markets momentum. He will tell you where to put your money and in one case where not to put your money. Some of the most popular stocks he thinks stay away, and talk about a big oops, a pilot accidentally landing a boeing 787 cargo plane at a tiny airport in kansas with a tiny runway. Well tell you all about the blunder and what they need to do to get out of it. You really love, what would you do . [ woman ] id be a writer. [ man ] id be a baker. [ woman ] i wanna be a pie maker. [ man ] i wanna be a pilot. [ woman ] id be an architect. What if i told you someone could pay you and what if that person were you . When you think about it, isnt that what retirement should be, paying ourselves to do what we love . Its been that ways ysince e day you met. But your erectile dysfunction itld be a questionof blood. Cialis tadalafil for daily use helps you be Ready Anytime the moments right. You cabe 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 medications, and ask if your heart is healthy enough for sexual activity. Do not take cialis if you take nitrates for chest pain, as this may cause unsafe drop in blood pressure. Do not drink alcohol in excess with cialis. Side effects may include headache, upset stomach, delayed baache or muscle ache. To avoid longterm injury, seek immedte medical hel for an erection lasting more than 4 hours. If you have any sudden decrease or loss in hearing or vision, or if you have any allergic reactions such as rash, hives, swelling of the lips, tongue or throat, or difficulty breathing or swallowing, stop taking cialis and get medical help right away. Ask your doctor about cialis for daily use and a 30tablet free trial. Liz no doubt about it, 2013 has been the year of the hot ipos. The first trust ipo etf this is a was debt of the biggest names is up from 44 yearoveryear. But our next guest is saying the complete opposite. Total contrarian. Stay away from stock market newbies. There are better choices out there, he says. Wheres he putting his money instead . Barry james, president and ceo of james advantage fund. The fund itself is doing very nicely, year oh year up about 34 . That, of course, bests the benchmark, looking very good here, barry. First of all, why . Some of these ipos have done so unbelievably well, and on top of it theyre good companies. Mr. They are. And im not going to speak against any company in particular. But if you look back at the history of ipos, generally the first year they do not do well. One of the things we like to look at are Companies Buying back shares of their company, those are good bias. Those that are issuing new shares tend to dilute themselves and dont go up very much. When is the big withest issuance of shares . On the initial public offering. A company like facebook, for instance, a lot of hype about it. Fell dramatically the first year, but after the first year, that was the time to buy it, and it did exceedingly well. Not to say none of these arent going to do well, but i dont like to jump in on ipos at all. Liz i think thats smart advice because it can be awfully volatile. That said, the Broader Market has looked incredibly good. Today we have a very nice rally. Were above 16,000, we could close in nine minutes above 16,000 for the very first time. Does that mean that you feel that by the end of the year and there are only, what, about six weeks left of the year that while there may be a few warning signs and were coming up against another debt ceiling battle that you feel pretty good about equities . I do. [laughter] if i can use a medical term, advanceitis. If its rising historically, thats a good sign. I think of this kid that plays football out in washington state, they call him big tony or big ton, Something Like that, 400pound running back, and it takes five or six people to bring him down, and thats what the market has right now. Easy money going on, typically 23 annualized gains when we have quantitative easing. To thats a real positive. So thats a real positive. And despite all the shenanigans in washington, the less thats done is actually good for the stock market. So youve got a couple things this place, plus parts of the economy are okay. There are some warning signs, but overall i think weve got pretty good view to the future be until we run into those hurdles probably as we get into next year. Liz okay. That leads us to your strategy, and with tapering potentially coming on the horizon in mind, you in essence say you look for inexpensive stocks, theyre cheap with a good earnings record, etc. So lets get to some of these names. Im looking at three that you have today, valero, horseman insurance and alaska air. All three of them up doubledigit percentages which scares me, frankly, barry. Theyve had a very nice run already. [laughter] well, you know, the nobel prize was for disproving the random walk on wall street. Now, my father actually made that proof [laughter] ten years prior in his doctoral dissertation. Liz he needs credit give daddy james credit. But it still works. It still works. Those that outperform continue. Its just like a good baseball player, you know, youve got to pay him a lot of money, but you want to keep him on your team. So these particular companies are in some sectors we think are going to do pretty well. We look at the energy area, weve seen the oil come down. Thats very good for refiners. Anything below 100 they tend to make a lot more money. Liz sure. Theyre cheap with good dividends. Horsman, they participate with this whole money thing going on horace mann, theyre very highly respected, have been doing a good job. And alaska air, people may be with cutting back as you talked about the targets, but theyre not cutting back at the top line items, you know, the little more expensive items like taking those nice vacations to hawaii or alaska. So we still see that holding up well. Great company, lots of profits. Year after year after year profits, and theyre rated best by j. D. Power and associatings. Liz had people been smart, they could have bought between july and august at a very nice discount because now its up significantly. [laughter] barry, thats right, i said it, get papa james the nobel prize. They stole his idea. There you go. [laughter] liz thank you so much for joining us. Were going to put all of barrys stock picks and his previous picks to see how hes done on facebook. Com lizclaman. Barry james, president and ceo of james advantage funds. Closing bell, about five minutes. We are up above 16,000. You may witness history, and the s p, just three points shy of its most recent record of 1798. And the dow may close above 16,000, as i said, for the first time ever. We are tracking every move. Five more minutes, guys, got to see how this one turns out. Hi honey, did you get e toaster cozy . Yep. Got all the cozies. [ grandma ] with n fedex one rate, i could ll a box and ship it r one flat rate. So i kn untilt was full. Youd be crazy not to. Is tt nana . [ male announcer ] fedex one rate. Simple, flat rate shipping with the reliability of fedex. [ male announcer ] fedex one rate. 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. Try align. Its the number one ge recommended probiotic that helps maintain digestive balance. Stay in the groove with align. Who found a magic seashell. It told him what was happening on the tradg floor in real time. The shell brought him great fame. But then, one day, he noticed that everybody could have a magic seashell. [ indistinct talking ] [ male announcer ] right there in their Trading Platform. [ indistinct talking continues ] [ male announcer ] so the magic shell went back to being a. Shell. Get live squawks right in your Trading Platform with think or swim from td ameritrade. Liz will it happen . Dow 16,000, will we close above it . David asman you lack to be here for history. David looks inevitable. Looks like were heading into the right direction anyway. It has to lose more than 14 points. Doesnt look like it is going in that direction. Liz what must be like on the floor of new york stock exchange. Nicole, im not sure they were ready for this one, right . Looks like well close at these levels for the first time ever. This is only six months after 15,000. Liz right, we need to keep you on the screen because those traders behind you may very well go nuts. We can not ignore Green Mountain. They reported yesterday after the bell. Initially jumped and then sell pretip susly and took precipitously for people to find their bearings. Theyre doing well with the kcups and brewers. As a result, it is up about 14 , up 70 this year. David pandora, were keeping eye on pandora. Pandora and gap are about to release earnings. Pandora is not waiting for earnings. Traders are going right for you. It is up 4 1 2 right now. This year it is up 225 . Pandora is a great performer. Watching gap now. Banana republic, old navy, are part of the gap. Liz surprised me, gamestop dropped after earnings. It had a poor outlook and still had decent numbers. Were starting to lose our 16,000. Were at 16,008 going into the closing bell. [closing bell ringing] david we did it. Liz well the numbers still have to settle, keep that in mind. Right now looks like history has been made, 16,009. David where is the champagne . Liz got the applause, anyway. Here we go. We have the s p 500 also up, at 1795. Russell go thousand, a nice move, up nearly 2 . David wow that is small and midsize caps. Folks who care about them as we do. Of all the indices, twice what the dow is doing. More than that. Front page headlines, this is the real front page headline the initial jobless claims fell to a twomonth low last week. That is one. Reasons the market did so well. The labor market could be strengthening. First Time Applications dropped to 323,000. Economists were expecting a fall