Treasuries went up. A little concerned, perhaps, about the stock market. Now, we know one executive whos presumably looking for a new job today, Tim Oshaughnessy saying hes stepping down this year. Living social is not publicly traded, but there are a lot of guess about them being questions about them being the big competitor to groupon. Target now telling us that its data breach was worse than previously thought. As many as 70 million customers had their personal information compromised. Target also lowering Forward Guidance. Its shares are moving down just a few percentage points, but its sears getting slammed today after it also lowered its guidance. That stock down more than 12 . A little later on were bicycle to speak to speak to sears public enemy number one. He took photos of empty sears shelfs. He says sears has gone from a sick patient to one who is now in critical condition. We, of course, invited sears executives to come on, they declined, so im going to fight brian. Theres some good things about the allamerican brand. Were digging, were mining for those, were going to fight it out in just a minute. But investors and traders really believe this bad jobs number, if they did, shouldnt the markets be down more than they are . Lets take you to the floor show, Nicole Petallides in the thick of it at the new york stock exchange, our commodities expert, sandra smith, here in new york today, and, of course, our floor show traders, ted weisberg, gary kozlowski. Nicole, we begin with you. Look, down 30, 40 points, that, to me, doesnt look as bad as the jobs appeared on the surface. Right, and the jobs number, obviously, was atrocious, only 76,000 jobs added. That Labor Force Participation rate is really horrifying. It Shows Americans werent looking for jobs at all. They were disgruntled, they didnt believe they would get one, they were too cold, whatever reason. We saw, as you noted, bond yields dived down like missiles going from nearly 3 to below 2. 9 , right now at 2. 86 . And what happened . People started buying dividends, dividendpaying stocks, and the Home Builders have been rallying, take a look at some of the names, most of the 16 names in that group actually have up arrows, and that is all on the belief that the fed now will not taper as quickly as some thought that they may. We know in the last round that they tapered by ten billion. Its interesting, right now most of the names in the book, dr horton up 1. 7 , lennar up 2 , and so is toll brothers. In the meantime, the major market averages have been pulling back to a certain extempt. Liz and, sandra, one thing thats rallying has got to be gold, up 17 in the after market. Forget that, silver is besting it. Copper looks pretty decent too. Well, silvers definitely been more volatile than gold, and that trend definitely continues today. But gold, which really lost its luster in 2013, first annual drop in 13 years, sort of seeing that change a little bit today with that jobs report, that flight to safetys back, growth concerns are back. You are seeing gold up more than 15 back above that 1200 an ounce. So this is the best gain weve seen in a week and, by the way, gold finishing the week with a weekly gain, very important to point that out because one day doesnt make a trend, but a week certainly could. So a lot of folks are going back to gold. Liz, its sort of that trade that believes now maybe the fed wont taper as quickly as the market had anticipated, and thats why were seeing those dollars go back into precious metals. So gold, silver really outperforming the market today. Liz i think that perceptions wrong. I think the tapering, if they start to go back on it, it makes them look like theyre on the hook for every single tick of data. I want to get to the floor show, since we started the show, we have pared our lasts on the dow in half, the nasdaq, russell and s p are all positive, whats going on . Liz, youre right on the money with your evaluation of the fed. I dont think theyre going to change course. It would be almost impossible for them. I think the dye is cast. The die is cast. Tapering is going to be the drill from now until theyre done, until they get to neutral. And in terms of the market, you know, the averages are down, but when you look at the screens, theres as much green as there is red on the screens. I think were all a little spoiled, you know . Weve been on this positive bias almost every month for 2013 but two, and i think we get a few bad days, and everybodys kind of looking at the exits, and i think perhaps p thats premature. I dont think the overall market is as bad as the averages have been indicating for the last four or five days. Liz gary, we showed a slight flight to quality, you could call his a mosing. Yes, the treasury yields went down and the price went up, but do you think thats going to be extended monday when everybodys saying, well, maybe that number just was a oneoff . Well, youve got to look at the volume levels first, and i always bring that up. There werent a lot of people in the market today as anticipated especially with the jobless number that we had. So what were going to be looking at monday is youre going to get a lot of people scratching their head saying, you know, is this a buyin time perhaps . Everybody was looking at it to reach 325, possibly 350 by mid year, and what did it do after it got up to that key three level, it pulled back down on this weak number. And as far as the tapering is concerned, im a little bit more on your side, i hate to say it, i really think that theyre going to maybe instead of going ten billion at a shot, theyll stick their toe in the water and say well do this little five and show weve still got some confidence going on this. Liz okay. Now we bring it to energy because when we had the deep freeze just a few days ago here in new york, we started to see natural gas well above 4 per unit, were still there, six cents above. But im just wondering as we start to see a little mist which means its getting warmer on the east coast, what happens then . Well, we can see what happens with the price on natural gas. It came off hard. However, i dont think the winters over, so i think were in an oversold situation with natural gas, and think weve seen the low around the 3. 95 level which was last night or if its going to get to a low, around 3. 88 to 3. 91. I think from here we start to rally out, and i think were going to get to the 4. 40 level on natural gas. Liz teddy, natural inclinations of the market, when do we see what we know has to be coming, and that is some type of correction where a little air is taken out of what is now a very stretched we can call it a balloon, sure. We can just call it a ball, i dont know. At some point dont we see that, and is it in the month of january, february . Well, liz, listen, if we knew that, wed probably be off on our yachts someplace, and we wouldnt be here talking to each other. But, you know, i think everybody thinks theres a contraction here somewhere. Unfortunately, theyre not going to ring a bell. And its going to happen for reasons that you and i and your viewers least expect. But theres no question, you know, that were pretty stretched on the upside here. And so were due for a pullback. The good news is that at least for the benefit of 20 20 hindsight, every selloff that we saw last year turned out to be a buying opportunity, and i think until that proves not to be the case, you just have to buy the dips when they come. And, yes, they will come. Man, we just showed such a pretty fiveyear chart of the Dow Jones Industrials through an unbelievably difficult time. There it is. And those divots around 2012 and, you know, 2009, 2010 really smooth out over time. Gentlemen and sandra and nicole, we thank all of you. Weve got that closing bell ringing in 52 minutes. Todays jobs report, caught unawares, caught all the highly paid wall street economists by surprise. But what about the Labor Department . Labor secretary thomas perez joining us next live. Were going to not only delve into the numbers, because it was a weak number, but were going to ask him this why have nearly 350,000 people disappeared from the work force . Its called the participation rate, and it has just dropped. And expelled from harvard. Weve learned former sac Capital Advisers manager whos on trial right now Matthew Martoma cheated at harvard and so was booted. A judge has ruled it can be admissible. It began with the Opening Statements today. All that and much more straight ahead right here on countdown. [ female announcer ] who are we . We are thinkers. The job jugglers. The up allnhts. And the ones who turn ideas into action. Weve made our passions our lifes work. We strive for the moments where we can s, i did it we are entrepreneurs who started it all. With a signature. Legalzoom has helped start over 1 million businesses, turning dreamers into business owners. And were here to help start yours. Over the piz place on Chestnut Street the modest first floor bedroom in tallinn, estonia and the southbound bus barreli down i95. This magic moment it is the story of where every great idea begins. And of those who believed they had thpower do more. Dell is honored to be part of some of the worlds great stories. That began much the same way ours did in a little dorm room 2713. This magic moment open to innovation. Open to ambition. Open to boldids. Thats why n york has a new plan dozens of tax free zones all across the state. Move here, expand here, or start a new business here and pay no taxes for ten years. Were new york. If theres something that creates more jobs, and ows more businesses. Were open to it. Start a taxfree business at startupny. Com. Liz that jobs report which surpriseo the downside is the big talking point today on wall street and perhaps main street too. So heres what markets did. They were mixed following that number, a disappointing reading of 74,000 new jobs added in december. Thats way below wall street expectations of about 196,000. Thats what people thought. So you have most prominent banks and their economists strategying their heads strategists scratching their heads. Look on the screen, deutsche bank, all of them expecting numbers in the high 190s or 200,000 range. So what is behind such a wide miss, and could next months report be better or even worse . Joining us now from washington, d. C. , tom perez, hes u. S. Labor secretary. Thank you for joining us, secretary perez. The number had the socalled smartest guys in the room on wall street scratching their heads which does make some people wonder what happened here . Are they wrong . Is the number wrong . Or is the economy really faltering way worse than we expected . Well, obviously, the number was less than we expected. We always want to see higher numbers. But at the same time, its always important to put this in perspective. One month does not make a trend. Whenever the number is high in one particular month, im always looking in the context of prior months. You look at the last three months, weve averaged 177,000 jobs including 241,000 jobs last month. Finish you look over the last 46 months, weve had 46 consecutive months of private sector job growth to the tune of 2. 2 million jobs last year. So i think what this report shows and what the trend data, more importantly, you know, the economy continues to move in the right direction, number one. We have to pick up the pace of growth because were leaving too many people behind, and then most immediately to me what the numbers show is that congress has to get to work and complete the process of expanding extending the emergency Unemployment Compensation program. Because longterm unemployment, you know, remains at or near historic highs, and this is not the time to discontinue can this critical lifeline for 1. 3 million people. Liz i look at these numbers, and one thing surprises me. We had a very solid november number. It seems like the Mainstream Media tend to question a really good number and yet give a lot of credence to a bad number. I dont think thats fair, but on the other side, mr. Secretary, it really bothers me to see that while over time in 2013 the average number of jobs created was 182,000, so that holds up the continued 40, 46 months of job creation, and yet thats roughly in line with 2012. So it almost looks like were stuck in the water or just plateaued. Shouldnt we be improving from 2012 to 2013 and, i would hope, 2014 . Well, i think we are improving. And, again, you know, the trend data, i think, bears that out. At the same time, you know, the president has said many times we need to pick up the pace of growth, and he has a plan for doing that. And it involves infrastructure investment, you know, our roads and our bridges, passing Immigration Reform which the cbo and others have said would grow the economy, investing in skills which is so critically important. I hear from so many employers, liz, that they want to grow their business whether its advanced manufacturing or in the health care context, but they want to make sure that people coming through the door have the skills to compete. Thats the business of the department of labor, is making sure people have those skills to compete. These are the things we need to be investing in. If we did all that, we could easily pick up the pace of this recovery liz okay, but even further. Liz look, youre in a fight with at least some on the right about extending jobless benefits. The administration would like to do extension of emergency benefits. Some republicans are saying thats not a good idea. Make the case at least to some of the people out there who feel that Unemployment Benefits are a crutch and leave people to say theyre continuing to search for a job but respect really or they wont take but arent really or they wont take a lesserpaying job. We need people to understand theyve got to start lower once again and work their way up. Make that case. You know, i spent this week with you have roughly two dozen longterm unemployed. And when i hear the argument that theyre not looking hard, theyre lazy or theyre not willing to take a job that is below their pay grade, that is just so inaccurate. And, frankly, this sort of blame the victim mentality that i see among some, youuknow, is really i find it a bit offputting. And the thing that the longterm unemployed that i spoke with this week said that bothers them the is the suggestion by some that theyre not looking hard. I mean, i had people who have said, you know, i cant get a job at walmart even though i have a College Degree because they think if i took that job, ill leave in a week when i get the other job that im looking for. Theyve said that they cant get a job at the skill that they had before because there arent enough jobs out there. Theyre looking hard. And if we want to maintain the attachment to the work force, having that lifeline of emergency Unemployment Compensation is critical because, as you know, liz, one of the requirements of receipt of emergency benefits is that you continue to look for a job. Liz true, right. And thats why congress has on a bipartisan basis five times during the Bush Administration with no Strings Attached extended it. And thats why its so critically important to do it again next week. Liz five times under the Bush Administration, an important point. Look, were all americans, we want this country to do well. Well be watching it. Thank you so much. Great. Thank you and have a great weekend. Liz you too. Tom perez, u. S. Labor secretary. Closing bell ringing in about 40 minutes. Former sac Capital Advisers manager matthew mar toma getting his day in court on Insider Trading charges one day after we learned he cheated at harvard. Next, Charlie Gasparino and i will ask the attorney who took sac capital founder steve cohens deposition and how this revelation could impact the entire case. And its an allout twitter war over the embattled retailer, sears, which has just cut Forward Guidance today. The stock analyst who launched this campaign with us live. Is sears really in a death spiral, or is it just trying to grow out of its pain . Im fighting it out with brian zazi, next. [ female announcer ] you get sick, you cant breathe through your nose. Suddenly youre a mouth breather. A mouth breather how do you sleep like that . You dry up, your cold feels even wors well, put on a breathe right strip and shut yr mouth. Cold medicines open your nose over time, but add a breathe right strip, and pow it instantly opens your nose up to 38 more so you can breathe and do the one thing you want to do. Sleep. Add breathe right to your cold medicine. Shut your mouth and sleep right. Breathe right. Afghastan, in 2009. On the u. S. S. Saratoga in 1982. [ male announcer ] once its ened, usaa Auto Insurance is often handed down from generation to generation. Because it offers a superior level of protection. And because usaas commitment to serve current and former miliry members and their families is without equal. Begin your legacy. Get an au insurance quote. Usaa. We know what it means to serve. Liz so you heard yesterday that sac capital portfolio Mathew Martoma who is on trial for allegedly trading on inside information for the nowembattled hedge fund was expelled from Harvard Law School in 1999 for in the most detailed and convoluted way fudging his transcripts to try and get a job as a clerk. How did he slip through the cracks at sac when the firms founder, steve cohen, said that compliance is of extreme importance . Listen to the deposition to see just how much cohen knows about compliance at the hedge fund he founded. This was back in 1992. Doesnt matter. That wasnt my question. Youre the head of sac. Thats correct. And you take not trading on Insider Information critically. Absolutely. Have you ever taken it upon yourself to read the rules . I rely on my counsel. Is the answer, no . I might have read em, i just dont remember. Who was that boy talking to him . Well, Charlie Gasparino joining us with that man, michael bowe bowie. Liz im sorry. [laughter] anyway, you were the guy who deposed steve cohen back then. Clearly, he was agitated or at least pushing back on you. But charlies here to talk about the issue with Mathew Martoma as well. We will talk about that, but what was worse, cohen having to ask all those pain in the rear end questions or the fact that you made him wear a jacket and a suit . What do you think was worse . I think the questions were worse. He clearly wasnt comfortable. Lets get into that in a minute because this depositions fascinating. It was for a separate case, didnt even involve Insider Trading. Martomas facing 20 years in jail. Credibility matters to a jury. Youve been before a lot of jurors. If youre a your juror and your sitting there and the government has a fairly good case, hes innocent until proven guilty, but all of a sudden it comes out that, hey, the guy that may go to the guy that did something wrong also may have fabricated his transcripts . Ive actually never heard of that. I dont know how you fabricate your transcripts, you have to create them out of thin air. What does that do to a defense . Look, the evidence against him is already so overwhelming, but if this evidence gets admitted it hasnt been yet, but it might be its absolutely devastating because to a regular jury, Insider Trading is a little got bic. Something like this which is just out and out, or its this malicious, sort of calculated lying, its absolutely devastating. Liz go through what he did. Can i ask just one more question . What are the chances they might allow this . Then go to liz. I think given the amount of evidence thats already against him, i think itll take a high, i think itll take a lot for the judge to allow it in there, but he has issued a preliminary ruling on ceiling which i think indicates if they open the door, hell let this come in. Okay, im sorry. Liz okay. Were going to the issue of Mathew Martoma. So lets talk about what exactly it was that he did at harvard. He fabricated all kinds of transcripts. He says he did it as a joke to make his parents laugh. Yeah, its very funny to get expelled from harvard. It just lacks all kinds of credibility, but Mathew Martomas not even his real name, is it . No, thats right. He has a name that was changed, and then when you look at the transcript making up grades in your transcript liz it looked line he changed his name to cover up the fact that he was expelled from harvard. In his defense, a lot of ethnic people have changed their names to be more anglo. The name change isnt the problem. The name change is the problem here, clearly, is the transcripts. And let me ask you this, though, you know, that clip that we just showed was on the frontline special, we were both on the frontline special on Insider Trading. Why did you ask steve cohen about Insider Trading . The case that you were bringing against cohen had nothing to do with Insider Trading, it had to do with market manipulation. He and other hedge funds manipulated the stock, allegedly, of fairfax financial. The case was thrown out of court. I know youre appealing, but, you know, i think cohen has been removed from the case as it stands now. Why did you even go to the Insider Trading . Its kind of like besides the point even though it became a big issue. Well, it wasnt, because our case was a racketeering case. Fairfax was one of the First Companies to allege that sac was a criminal enterprise. Thats way back in 2006. And its part of establishing that criminal enterprise, the rico enterprise. We alleged that among market manipulation, they also engaged in ram pant Insider Trading. And so part of our proof in showing the enterprise was to prove up the Insider Trading. And with respect to sac, we had emails where they had cohens own group, his trading group, had advanced knowledge of a report that was coming out from Morgan Keegan on fairfax that was going to be the first report out, it was going to be it was a sell, it was going to say it was insolvent. It wasnt marginal report. It was a blockbuster report. It drove the stock down. They had that before it was released. They were emailing about it inside the group with cohen on the emails, right . And he did nothing. And when you go through the testimony around the compliance manual and the fact he doesnt know whats in the sac rules, it just dose to show he doesnt know whats in his compliance manual because he obviously doesnt care. And when you look at how they behaved with this material inside information, the compliance manual says they cant trade on it. If you get it, dont talk to anyone about it ive read it. Dont trailed, immediately call general counsel. None of them did that. And cohen is on those emails. Liz what was the most stunning thing you found about steve cohen when you deposed him . The most stunning thing, i call it his colonel jesup moment. Because he got very frustrated about the question. It also relates directly to how he views compliance. He could not reconcile what he was trying to say was okay with the compliance manual. And what he eventually then said was, you know what . It was sort of like, what. He goes, its my firm, i own it. And so if i think this stuff is okay, then, you know, the compliance manual is basically just a guideline. Right. And then he said in the same segment right. He said you know what im going to do . He was really just sort of agitated, right . Do you know what im going to do . What are you going to do . When we leave here, im going to go back and rewrite the compliance manual. I said, what is it going to say . What weve been talking about here. And the most stunning part was i asked him do you even know if thats legal . And he said, i have no idea. He also didnt like the fact that you called him stevie. His lawyer didnt. Or his lawyer didnt. What you didnt see in the clip, his lawyer gets into this big argument with you. Whyd you call him stevie, to throw him off his game . Whats that . He hates the name. I wouldnt try and throw anyone off their game, charlie. So you werent trying to throw them off. [laughter] theyre giving me the wrap. Liz were getting the wrap. Do you think theyre ever going to indict steve cohen himself . Yeah, i do. I think theres far more risk in not indicting him than indicting him. If they get the guilty plea from sac, im very confident theyre going to get a guilty verdict on Martoma Steinberg already. Steinberg already. So even if they go and indict him and they lose, which i dont think they will, but be they did, well, they would say, okay, we took it as far as we could. If they dont, hell forevermore be the guy who got away. How can you let a guy get away with billions of dollars who clearly was on top of this organization . Maybe hes innocent. Liz michael bowie, thank you very much. Will you come back . Sure. Liz youre a treasuretrove of information having been one of the few who has deposed steve cohen. Thank you so much. Thank you. Liz weve got the closing bell ringing in 28 minutes. I just returned from the Consumer Electronics show. I have one more gadget to tell you about that could change the way you look at your phone forever. And Eddie Lamberts battle to pull sears back from the brink seems to be failing. Will this iconic american brand even exist a year or two from now . Our next guest has locked horns with executives with these photos of empty or messy shelves. We will tell you why he thinks looking at the company is like looking at an extinct dinosaur. If youve got copd like me. Hey breathings hard. Know theeeling . Copd includes emphysema and chronic bronchitis. Spiriva is a oncedaily inhaled copd maintenance treatment that helps open my obstructed airways for a full 24 hour spiriva lps me breathe easier. Spiriva handihaler tiotropium bromide inhalation powder does not replace fastacting inhalersor sudden symptoms. Tell your doctor if you have kidney problems, glaucoma, trouble urinating, or an enlarged prostate. These may worsen with spiriva. Discuss all medicines you take, even eye drops. Stop taking spiriva and seek immediate medical help if your breathing suddenly worsens, your throat or tongue swells, or problems passing urine. Si, other side effects include dry mouth and constipation. Nothing can reverse copd. Spiriva helps me breathe better. Does breathing with copd weigh you down . Dont wait to ask your doctor about spiriva. It is feeling holiday blues, names like targets, bed, bath and beyond, due to deep discounts and less foot track in sports, bed bath and beyond the only one moving higher by 3 pennies, seers down 13 at its worst point, down 14 , the retailer free reported poor earnings yesterday. It has been one long year since shareholder it Eddie Lambert finally yanked back and assume the role of ceo. He owned it longer than that. Yesterdays numbers were disappointing, claim they dont tell the companys turnaround story. One man who is buying is brian, the vigilante Equity Analyst has been doing this, photograph things years store shelves, recording a disarray of displays, displaying findings on twitter. That doesnt look so bad, boxes thrown around, empty shelves, trying to give them the benefit of the doubt but started a twitter work, seers vp tweeted do you ever think about the 250,000 employees, and lashed out again and saw these saying we keep hearing this tired song and keep proving shorts and pundits wrong. And got to play the side of sears, this guy, dollars Capital Advisers io and chief Equity Analyst. You go into these stores, photograph their shelves and what was your impression . Before i go into stores i come armed with facts. I want to prove or disprove something. When i see empty shelves, spilled battery acid on the floor, the stores are disintegrating in front of everybodys eyes and why . One man, Eddie Lambert. The cutbacks in 2013 by 50 and that is not normal because macys, walmart, target sprucing up their stores, sears going away and kmart. Liz you saw chris is upset, that makes the point. People are always shooting the messenger which usually is us in the media. Do you understand . Sears has great, great realestate holdings, plus if they dont own the pieces of property under which their spores are they are able to first refused, does that not put value in these wars . Look at this. They are huge landowners. You are my girl. Without way and how valuable is it if you are not investing . How valuable is a craftsman or lands an end to show your clothes . They are not investing in core brands or scores and the hard assets skiers thinks is worth some much money, and a shout out to chris, that shop on your way program is ruining the company from the inside out because it is lowering margins and giving product the way for free. Liz they have brands like kenmore, die hard, not just sold in sers but in costco and shes hardware at decent prices and got positive reception. Can they not put a value in those names . They could take those brands and put them outside seres but do you think about costco . You think about going to see years. When you go to sears, the housing recovery, no good. Where are you going . Home depot and lowes boosted their offerings to give you a better shopping experience. Cheryl the improving Housing Market is a catalyst. It is not showing the results. Samestore sales, he met rickover 20 straight quarters. Kmart are negative, they have been down 14 of the past 15 quarters. That is any other retail got a business but see is selling assets to stay alive. Liz the progress the company has made was not reflected in earnings. I cant say much about it. Show me the money, show me the success and therefore what is he talking about . Starting to sound like j. C. Penney. He is delusional. Time for Eddie Lambert to get out. Liz us smart guy, arguably brilliant. Sears is proving to be a tough nut to crack. They should change the logo. The logo looks tired and old and that might help. He is a brand and i say look at the consumer outrage i have been getting since these pictures went viral. People feel violated by seers, had money taken out of their pocket like a target, outraged, living for my twitter feed absolutely awesome. Never seen that before. Liz are you trying to get your clout score up . I have another one. They have been saying i am consulting for macys. I have any live in your track record. How dare they . Extremely unprofessional and need to clean up their act. Liz you are not consulting . Most absurd thing i ever heard. Liz would you be the first to supports years if they do something good . Absolutely. I want to root for cs. I grew up with sears, my mom grew up with a budget dollar stores, i want them to survive and do well. And they proved they can do well. Liz there are many hardworking people at sears, running around with your camera. Thanks a lot. And we extend the invitation to Eddie Lambert to come on the show and defend themselves. We are all about being fair and balanced, please come on and consider that. Closing bell ringing in 17 minutes, huge jobs did not give markets a mass of hangovers but why did investors shrugged off a weaker than expected payroll number . Markets dont believe it. Next we have an allstar panel to tell us what the markets are looking at and if you are missing the keyboard on the old blackberry you gave in, this year of touch screen devices gone forever . Dont worry. New technology that could be the best of both worlds. Details when we return. [ male announcer ] heres a question for you where does the United States get most of its energy . Is it africa . The middle east . Canada . Or the u. S. . The answer is. The u. S. Most of Americas Energy comes from right here at home. Take the energy quiz. Energy lives here. Of the dusty basement at 06 35th street the old dining table at 25th and hoffman. And the little room above the strip mall f roble avenue. This magic momt it is the story of where every great idea begins. And of those o believed they had the power to do more. Dell is honored to be part of some of the worldgreat stories. That began much the same w ours did. In a little dorm room 2713. This magic moment liz just come back from the international Consumer Electronics show in las vegas and want to tell you about Cool Technology that could transform or smart phone and replicate the only thing many of us still cling to, our blackberries for, that is the textile keyboard. That we can actually feel. It comes from a company do you see this . Is it is a transparent layer for your iphone screen that makes keyboard buttons rise, helped by micro fluid that expands under the surface. It could be the perfect cure for anyone suffering from blackberry withdrawal symptoms. I wont even give mine up. I ran into a lot of people who said i miss my blackberry when they seem eager live out. The december jobs report, it shocked everybody, harold gross, 74,000, when the expectation was 196,000. Ville lower participation rate, a 62. 6 , from 63 . Should you be concerned when it comes to your investments and whether this will hurt the markets . Two guests are not convinced this day is serious setback for the market. Joining me to break down the numbers, Palisade Capital Management edt, and laurie harris, ubs chief economist and managing director. Let me start with you. What was your projection for the jobs numbers . Were you surprised . Me and everybody else were surprise, 185,000. There is a lot of reasons not to believe this number. Your slowdown was not broad based but just a few areas and bad weather had something to do with it too. I forecast these numbers will come back, 200,000 a month this year. Liz you expect we will be in a better position and benefits that told you as far as the number is concerned. Toss it because it cant be cooperated by Everything Else we know when we look at the layoff statistics and for example the Conference Board asks everyday people are jobs easier or harder to get . Keeps telling us the jobs are easier to get. And less hard to get. This data today, it was out of line with what we heard from Small Businesses and out of line with what we heard from purchasing agents. This happens with payroll numbers some time. They are volatile and can surprise everybody. This was a head thing. Liz dan peru, disappointing number upset the way you planned to invest your clients money under Asset Management . Does it affect the way you invest this year . Not at all. It is hard to make anything out of one single data point. Doesnt matter what i believe what anybody believes, the bond market believes it and treasury rallying, the teniers under 290. That puts a bid in for stocks because the perception that Interest Rates will be moving higher in the nearterm have been the biggest enemy to rising equity prices right now. That will be put at bay until the next number comes out, possibly longer. Liz you say toss the number or told you so . You have to toss it because it is of volatile number and subject to a lot of revisions and we will see what happens next month. Liz it makes some people wonder, did the fed taper too early . You are a former economist for Federal Reserve bank of new york. Did the fed jump the gun a little early on capering . I dont think they jumped the gun. They always said these monthly numbers can surprise you. They are volatile and they dont make policy on monthly numbers. Given the other signals that i talkedabout, layoffs or what they hear from Small Business or purchasing agents i dont think the fed will feel they jumped the gun and in fact that the next meeting they probably continue to taper. They wont tabors that much but they will continue at the next meeting. Liz you say they will continue to taper. You have a different take on the markets. We have a shrinking overall market of lifted stocks. If you go back more than a couple years, back in 1997, the number of listed stocks on major exchanges ecb thousand 823. Today that has indeed shrunk so you see the number. Why is that positive for investing and why are you picking etna and other companies . You basically have growing earnings per across fewer shares outstanding and that bodes well for earnings per share growth as Companies Continue to shrink their equity capitalization to Share Repurchase programs and because of the merger in acquisition activity that has gone on so far. Most would tell you that m a is dead. It isnt. It is just occurring in the small to mid cap stocks. These stocks were gets reported one day by the financial media, the deal is done and you move to other news of the day. This trend is going on and on as the number of listed Companies Continues to shrink we are not replacing that feedstock of companies fast enough to the ideal process and not secondary either. Liz you say the number with the head stake in, and we love to have both of you. We have maury harris, managing director, dan peru, executive Vice President and co c i o. Closing bell ringing and 5. 5 minutes. Keep it here on fox business. We have an interview with toby cosgrove, Cleveland Clinic ceo and president , also a cardiac surgeon. The guy who everyone from the president to former governor mitt romney, we can fix the Health Care System in the country, he can outline the number four thing Everybody Needs to do to make us all healthy and make the system work better. Welcome back. How is everything . Theres nothing like being your own boss and my customers are really liking your flat rate shipping. Fedex one rate. Really makes my life easier. Maybe a promotion is in order. Good news. I got a new title. And a raise . Management couldnt make that happen. [ male announcer ] introducing fedex one rate. Simple, flat rate shipping with the reliability of fedex. [ male announcer ] introducing fedex one rate. My dad has aor afib. Brillation, he has the most common kind. Its not caused by a heart valve problem. Dad, it says your afib puts you at 5 times greater risk of a stroke. Thats why i take my warfarin every day. But it looks le maybe we should ask your doctor about pradaxa. In a clinical trial, pradaxa® Dabigatran Etexilate mesylate . Was proven superior to warfarin at reducing the risk of stroke. And unlike warfarin, with no regular blood tests or dietary restrictions. Hey thanks for calling my doctor. Sure. Pradaxa is not for people with artificial heart valves. Dont stop taking pradaxa without talking to your doctor. Stopping increases your risk of stroke. Ask your doctor if you need to stop pradaxa before surgery or a medical or dental procedure. Pradaxa can cause serious, sometimes fatal, bleeding. Dont take pradaxa if you have abnormal bleeding or have had a heart valve replaced. Seek immediate medical care for unexpected signs of bleeding, like unusual bruising. Pradaxa may increase your bleeding risk if youre 75 or older, have a bleeding condition otake aspirin, nsaids, or blood thinners. Or if you have kidney problems, especially if you takeke certain medicines. Tell your doctors about all medicines you take. Pradaxa side effects include indigestion, stomach pain, upset, or burning. If you or someone you love has afib not caused by a heart valve problem. Ask your doctor about reducing the risk of stroke with pradaxa. Became big business overnight . Like, really big. Then expanded . Or their new product tanked . Or not . What if they embra new technology instead . Imagine a companys future with the future of trading. Company profile. A Research Tool on thinkorswim. From td ameritrade. Liz wellthe s p and nasdaq are making a go of it for a flat line. David asman. David together again. Glad to see you here in new york city. Oh so close. Liz not quite. Nicole on the floor of the new york stock exchange. Yes, we got a disappointing jobs number. That has investors seeking safety in treasurys but utilities which have good deals, right . Dividend stocks and utilities safe haven. We saw utilities came in demand. David alcoa, really took it on the chin today. I guess some of the news about the economy slowing down, at least on the job hiring front might have hurt it more, right . No yeah. A big miss on their part as well, overall. Then just the fact that aluminum has been lowpriced, despite fact there is global demand. There is a lot of supply. Liz the 10year yaleed falls homebuilders are rallying. The trend. The dow is down 14 points. Kb home up 3 . Lennar doing well. You see bond deals coming down, obviously homebuilders jump on this. David nicole, this may be a record for wall street, intercept pharmaceuticals, came out with a new liver drug, doing great. Yesterday they had a 300 gain and they werent down done. They had a 60 gain. Absolutely. Intercept was the stock was up 533 . I dont know records by heart but that seems to be a wild one. [closing bell ringing] liz we close the books on the week. Bells are ringing on wall street. Look how stocks are finishing up. We have the Dow Jones Industrials down. Look at nasdaq, just under half a percent here. We see gains for the nasdaq, s p and russell 2000. After the bell starts right now. David we have an allstar panel ready to break down the action this week. Paul dietrich, fairfax markets ceo and chief Investment Officer who says there is one industry poised for big gains in 2014. He will tell us what it is. Jason rotman, lido managing partner. He says it may be time to look for international opportunities. Phil strieble in the pits of cme