Transcripts For CNBC Closing Bell 20131104

Largest shareholder. Theyre going to infuse 1 billion in the company. The ceo is out. We have the latest on the mess and blackberrys insistence. Interim ceo right now, a friend of ours, insists they will not stop selling the blackberry devices. But whos buying them at this point besides us . If you have one, is it time to give it up . Never. I dont want to give mine up. From my cold dead hands youll take it. I did switch to the iphone, you the by still rely on my blackberry. Isnt that amazing . Absolutely. I have both but i wish i could keep it, really. At least theyve got us. Rooting for them. To stay strong. A new cnbc poll shows investors are not sold on twitter as a stock that is especially the young people who use twitter the most. We thought that was interesting. So, why did the company just dramatically increase its ipo pricing range today . Take a closer look. Ahead of the big deal coming to market this wooeleek. Should you buy it when it comes to market thursday . Google outraged it may have been spied upon by the nsa. But someone one of our guests is asking isnt that what google does to its users . Is that a fair comparison so make . After all, google does have a user agreement. People accept it. Nsa doesnt have a user agreement i know of but we have both sides of the issue coming up. Fascinating, actually. Lets check the markets as we approach the final hour. Dow jones is in positive territory but off the highs. Up 14 points on the industrial average. It has been a slow creep higher for much of the day. Nasdaq nasdaq, similar chart pattern with gain of 10. 75, 3932. And s p 500 up 0. 25 . Dow and nasdaq creeping back toward alltime highs. Bob pisani whats moving things up . We bottom at the time europe closed and steadily moving up. Rom is slight to moderate typical of a monday. We have more cyclical doing better. Tech names, industrial names. Put up some sectors. Materials, all doing better. Outperforming the overall market. Housing stocks have had a lot of news. Theyre doing great. Tripoint is buying warehouse home units that was an interesting deal. Vulcan, they had a terrific report. Crudes, near the lowest levels since june. Airline stocks doing well. Delta at record high. We have u. S. Air, us airways at six or seven high. Southwest, same with them. Steel stocks are high. Goldman upgrade the entire area. This whole s. A. C. Settlement. A huge part of the volume, some say as much as 5 but more importantly, they were the largest commission payer of any hedge funds out there. While the impact may not be obviously, were certainly going to see somewhat lower volume slightly lower volumes. The big impact of course, is going to be on less commissions out on the street. Of course, wall street runs largely on those commissions. Guys, back to you. Thank you, bob. Joining us for Closing Bell Exchange jenna godfrey, aaron gibbs, hank smith and our own rick santelli. Good to see everybody. Thanks for joining us. I want to begin with hank here because, hank, i know in the past weve talked about financials. We got those new capital rules for the upcoming stress tests and the Bank Capital Requirements going into the next year. Whats your take on that . Would you put new money to work in the financials here . Well, yeah absolutely, because we think theyre still very undervalued and they have earnings power that hasnt returned to the precrisis level. So, yeah, theres some obstacles, headwinds, the financial reform, new regulatory environment, but thats all priced in, in our view. Jim, i saw you tweeted out to your followers asking them what risks you think they think investors have missed the most. What did you find out . What did they tell you . Well, one of the concerns that well i mean my followers are very concerned across the board in terms of whats going on in europe in terms of u. S. Policy. One of the concerns i think a lot of investors have missed is the fact that some companies out there have focused on costcutting alone to boost their profits. In order to maintain this profit trajectory they need to focus on Revenue Growth. In particular, weve grown more cautious on the banks because regulatory costs are going up. And in terms of economic back drop, its gotten a bit weaker. Cost cutting can only get you so far. Thats why the concern. Erin, what about you in terms of Revenue Growth what are you seeing from this quarter . So, this quarter is actually pretty decent for revenue. Next quarter is the big negative for banks. I think its largely priced in. Earnings tends to follow two quarters after the Revenue Growth trends. We see Earnings Growth being one of the worst for this quarter for financials and for 20 13 its the third worst sector for 2014 for Earnings Growth. With a meesely 4 Earnings Growth. Well below the average. If youre looking at sectors to avoid, right off the bat, financials isnt one of those high growers. Also when you look at valuations, its also one of the more expensive, particularly when you look at where it ranks within growth. Theyve been trying to cut costs. Hank you got a response to gemmas idea that cost cutting is not a longterm proposition. Thats been going on here in the u. S. For a while, hasnt it . Oh, its been going on for three decades now. Fortune 500 fortune 1,000 k7z have been doing nothing but cost cutting and thats part of the productivity story. So when the economy does pick up, thats going to fall right down to the bottom line. Youll have a much greater profit expansion. I mean the point is well taken, gemma, by your followers that cost cutting can only take you know, earnings so far. But it depends on how much fat is on the Balance Sheet right now, right . Exactly. Because you can only cut so much fat and then have you to look at, how can you grow performance . If were using the analogy, how can you make that steak taste any tastyier . Some ways is profit momentum. What were looking for in terms of, for example, Biotech Sector there are many different multipliers, many different drivers. You have m a activity secondly a strong pipeline of products. You have Revenue Growth drivers that are there. Thats the reason were slightly more comfortable there. Going back to the point that was mentioned initially in terms of valuation, et cetera, this is a sector thats underowned. Again, thats quite rare in this momentumdriven market to find something, you know, that is positioned like that. Yeah thats a good point. Meanwhile, the dow transporting touching record high. More money moving into this market. What are you seeing in chicago, rick . Jump in here. Were seeing a very, very calm treasury market considering we have important data. Thursday first look at gdp. Friday, the jobs report. Infraday ten, were not going anywhere quickly. You can see rates have firmed up. You can see theyve taken a toll on things like the hyg, or lqd, investment grade. The last chart may be the most important with ecb meeting. Euro currency taking a bit on the chin. Lowest level since third week in september. Maria, bill i sympathize. Im a big blackberry guy as well. Ive been hoping someone from blackberry would go on the air and say, if you like your blackberry, you can keep it, period but since that didnt work so well for health care, i guess it doesnt matter if they say it or they dont. Im with you. Someone call john chen quickly. Get him on here quickly. Quickly, before we go gemma, you dont think the ecb will cut rates on thursday, do you . I dont. I think that i remain acome dative. If they do, that would be a moderate surprise because only upside potential there. Otherwise its priced in the fact that the the possibility of them keeping rates on hold. We will see. Well leigh it there. Thanks everybody. Thanks, erin. Appreciate it. 50 minutes left in the trading session. Its been a calm trading day in the equity market just as rick was saying about the treasury markets. The dow up one point right now. And what about Health Care Bill. Obama care relying on young people to sign up to pay for the program and help the ouflt control costs of health care in america. How does that look so far . Weve got an update next. Speaking of young people have you heard about this new poll we conducted with the Associated Press . Cnbc ap poll finds 52 of people aged 18 to 34 those are the heaviest users, they feel twitter is not a good place to invest. Really . So if twitters core users dont even want to buy the stock should you stay away from that offering . Well look at that coming up. And then scrooge mcducks, thats what they are being called. They should pay more in taxes. You can but thats getting some reaction today. Later on closing bell. Vo two years of grad school. 20 years with the company. Thousands of presentations. And one hard earned partnership. It took a lot of work to get this far. So now im supposed to take a back seat when it comes to my investments . Theres zero chance of that happening. Avo when you work with a schwab financial consultant, youll get the guidance you need with the control you want. Talk to us today. Welcome back. As you know welcome back. As you know, in order for the Obama Care Health plan to work it has to have young, Healthy People to sign up to offset the older people who tend to use a lot of health care. Now were getting some details on who is actually at least inquiring about enrolling in the obama care program. Bertha coombs joins us with details. Bertha . So the Obama Administration has given itself 26 days to get the federal website fixed and running smoothly. And in the meantime, they say they are now going to be taking healthcare. Gov down between 1 a. M. And 5 a. M. It started over the weekend. Theyll be doing it now on a daily basis. While it will be another week before we get official enrollment data from the Obama Administration, some interesting indicators from a Commonwealth Fund survey. Fewer than 1 in 5 merndz who could be eligible under obama care said they visited healthcare. Gov. While 60 of those polled know about the online marketplaces, only slightly more than half are actually aware of the availability of subsidies. Of those who visited the exchanges, 21 said they had actually enrolled. Among early shoppers 1 in 5 is younger than 30. While more than half are between 30 and 49. 73 describe themselves as being in good or excellent health. While 1 in 4 say theyre in fair to poor health. Now, tomorrow Marilyn Tavenner will be back on the hill testifying. That hearing gets under way at 10 a. M. On wednesday Kathleen Sebelius will be back as well, testifying before the finance committee. Back to you. Bertha, thank you so much. The Obama Administration set a target of 7 Million People to sign up for the new Health Care Plan by march 1 st of next year. Thats 39,000 each day. The exact number of enrollees is not public but early estimates show enrollment falling short right now. Joining us right now with their take, doug holtz, former director of the economic budget action and michael mandell, economic strategist for progressive policy institute. Thank you for joining us. Doug, kick us off. What do you think the impact of Health Care Overall will be if the enrollment in exchanges falls short, which seems to be what were seeing . Well, this is a big problem for the obama care rollout. No question. You need the young invincibles. A group traditionally has not boughten some insurance. In polling we did earlier, 45 of them said they would not buy insurance if they saw premiums go up by as much as 30 . Were seeing much bigger increases than that. For a 30yearold male thats a nonsmoker, cheapest policy has gone up by 260 on average. For females, 190 . This smells insurance disaster for obama care, on top of the higher cost they built into the premium base. This is not good news. I mean, we want to talk about the cost and the enrollment and whether that goes down as enrollment goes up. Michael, you dont feel this sense of urgency yet. No, no theres no urgency yet. Because remember the data is march 1 st. Its not really march 1st. Its march 1st of 2014. We wont know until how the thing is doing until 2015. The fact is right now, im actually fairly confident theyre going to hit their goals. Look at Health Care Stocks up. Shouldnt be selling Health Care Insurance stocks yet. Obama care is something that will end up working. You think theyll hit their target of, what, 7 million by march 1st of next year but the makeup of the people that sign up is going to be very key to what it does to premiums, what its going to cost people. Right now we dont know what the makeup is going to be. But this is a little bit like you know you look at these early polls. When you have a new product that comes out that smart people dont try to sign up, they wait until the bugs are out. Everybody knows about the bugs. Lets look a month from now, two months from now to get a real answer about whats happening. I think the obama care program has a lot of momentum behind it. Well see it be successful in the end. I want to agree with something michael just said. I dont think were going to know today, tomorrow, november 15th, input i dont think they have as much time as they might believe. If they want to get people into policies, this has to be working very well by december 15th. I dont think thats this is more than a website problem. This is an enrollment problem. Enrollment hinges on what you get and what you pay. Your prices are not going to change. These prices are a big cost. The prices are lower than people think. You have a lot of people who dont have insurance now. They may be lower than they think but higher than last year. A lot of people didnt have insurance last year. Thats a big difference. What about the overall cost curve of health care . Lets not its going down. Its going to shift, though. Its going down. What about the concern about who is signing up . Too few young people, the invincibles Health Care Costs have been going down. Whats happening is were not hadding into a cycle where Health Care Costs are rising fast, theyre rising slowly. Im not worried about Health Care Costs at this point. Lets remember there are two different pieces here. Piece number one is the Health Care Bill how much our nation spends. And there obama care is designed to raise the bill. It is designed to cover people and say, spend more on health. Its going to drive things north. On top of that are insurance costs. Were seeing dramatic increases in the cost of insurance, particularly for the group they need the most. The young and healthy who are supposed to pay the bills of the others. Remember, Health Care Insurance its not going to get better. This is not about the website. This is this is about the fundamentals. Health care costs have been slowing michael, do you think the younger citizens out there, as concerned as they are about the cost of health care, are going to be the ones willing to pay the costs pay a higher premium to help out their older sicker brothern. Theyre not doing it to help out the older thats the basis of the program. Theyre not doing it, michael. Well its not happening yet. This is the early stages we raised the price. They can do the arithmetic. Anyone making more than 25,000 is going to say 95 penalty or a sticker shock of 260 a month. Well find out by march 1st which ones happened. Well find out if you think about the young people, i know a lot of young people. They havent been thinking ahead. Once we sort of tell them once they sort of are informed about the availability of Health Care Insurance, i think youre going to see a big change in behavior. Because youre relying on the legendary ability of the young to absorb the wisdom of their elders . Thats the plan . It can happen. It can happen. I have children in their 20s. Yeah, me too. Me too. Mine are for sale. Thanks, gentlemen. Well be watching. Appreciate your time. Well sigh you soon. Thank you. Final streven of trading for the day. We have a market fractionally higher. Slight moves. Five points higher on the dow. Google executive slamming the nsa for reportedly spying on googles data centers. When we come back well hear from somebody who says schmidt is being disingenuous maybe hypocritical because google spies on and exploits its own user information all the time. Red sox stars shaving off their famous playoff beards after winning the world series. And blackberry shaving off share after abandoning plans to be acquired. Blackberry has not won anything recently. Theres a segue. Time for loyalists to give up on their blackberry phone and move on to another device. No i wont do it bill me either. And im not shaving my beard either. Announcer where can an investor be a name and not a number . Scottrade. Ron im never alone with scottrade. I can always call or stop by my local office. Theyre nearby and ready to help. So when i have questions i can talk to someone who knows exactly how i trade. Because i dont trade like everybody. I trade like me. Thats why im with scottrade. Announcer ranked highest in Investor Satisfaction with selfdirected services by j. D. Power and associates. And just give them the basics, you know. I got this. [thinking] is it that time . The son picks up the check . [thinking] im still working. Hes retired. I hope hes saving. I hope he saved enough. Who matters most to you says the most about you. At massmutual were owned by our policyowners, and they matter most to us. Whether youre just starting your 401 k or you are ready for retirement well help you get there. Mike rowe here at a ford dealer with a little q and a for fiona. Tell me fiona, whos having a big tire event . Your ford dealer. Who has 11 major brands to choose from . Your ford dealer. Whos offering a rebate . Your ford dealer. Who has the low price tire guarantee affording peace of mind to anyone who might be in the market for a new set of tires . Your ford dealer. Im beginning to sense a pattern. Get up to 140 in mailin rebates when you buy four select tires with the Ford Service Credit card. Whered you get that sweater vest . Your ford dealer. Welcome back. Many investors may not realize it but their 401 k probably includes a lot of Technology Stocks volatile Technology Stocks. Sharon epperson. Technology stocks are among the most common and widely held stocks in 401 k plans. A lot of investors may not realize it because its easy to figure out what mutual funds are in your 401 k . Have you to do a little more digging to find out the stocks that are in those funds. We did some of the digging for you. The top funds in 401 k plans according to bright scope including two fidelity funds, as well as american funds, growth funds of america and two Vanguard Index funds. Within those, the most widely held stocks in those funds are Companies Like cisco ranksed number five in 401 k plans. About 1,000 mutual funds hold cisco in their fund. Jpmorgan chase, only nontechnology in top five. Google is third. Heavily weighted in contra funds, making up 6 of that fund. Number two is microsoft. And the number one most widely held stock in 401 k plans is apple. Over 1200 mutual funds hold apple. And it is in many of the top 401 k plans as well. If youre wondering about the volatility and quote unquote, plain vanilla funds in your 401 k , you may have to look under the hood and see what the Holdings Really are. You wonder if twitter will make that list at some point after it comes out. Well see. In the world of espionage its not easy to tell who your allies are. New reports say the nsa is going behind googles back and spying on the companys data centers. Google executive chairman eric schmidt expressed outrange over this over the weekend. When he was on this program a month ago i asked him about his take on nsa and google connections. Heres what he had to say. First place, were not allowed to discuss it and the law is very clear we cant talk about it. There were other allegations, for example, that the nsa had a direct connection to google. Those were all false. Weve actually looked to make sure that isnt true. And if they had wonone, it would be illegal and im sure they dont. Lets talk about if sthees new allegations are true, is doing 8 google being hypocritical . They say theres a big difference between google and nsa and jonathan schindler, from u. S. Naval war college. Yes, google does have that user agreement, so theres a little transparency there. But they do collect all that data on their users, just like the nsa is doing right now. Well, i think theres a bigger difference there. Its not just the fact they have a policy. Its the fact that youre voluntarily using their services. You understand while you use their services, and you may not be paying a fee for it theres something happening for them to be able to monetize it. You have the choice to use Google Service or some alternative. If what is being said is stru about the nsa, thats a different story. There is no optin no option to use these services. Theyre just taking the data. John, what should be done about that . Most people know the government is calling on these Technology Companies to give them data. If, in fact, theres a reason to do so. Yeah, look, first of all, what weve heard so far most recently are allegations from Edward Snowden stolen documents. Theyre just allegations at this point. And a lot have turned out not to be true. Nsa does not spy on americans without a warrant. The only grounds for spying on americans is a warrant on grounds youre working for foreign intelligence or foreign terrorists. No other grounds. Period, end of story. Google collects information on all of us. I dont know how one could use the internet without using google. I worked with nsa working some of the most sensitive projects in the u. S. Government. I guarantee google knows more about me than the nsa does. Your point is nsa is not on a fishing expedition with this gathering of data. They have a warrant. About what about that rohit . Well, these are allegations, so, you know not sure whats true or not true. If what is being said is true yeah assuming that it is. They have a warrant. They have a specific reason and specific information theyre looking for. Well theres a difference between a warrant and going to a court and asking for a particular piece of information and tapping into a companys internal network. If youre tapping into a companys internal network, youre privy to all the data being moved inside of that company. Thats a lot of data. There might be things there that extend above and beyond the kinds of data theyre looking for. You know working in the Information Security community we often tell people to lock down their internal networks. Make sure you treat them as untresed. That rarely happens. So, if someone were able to steal the data that was being trans transmitted, theyd have access to a lot of information that could be used for malicious purposes. At this point, hasnt the horse left the stable at this point . The information is out there. If the nsa wants to get the data on anybody, anywhere, they can do it. John, dont they need googles permission to go in and do that . But googles giving it . Oh, man thats it is question i really wanted to know. They have their warrant, dont they have to go to google and say, okay, we got a warrant, we want to check your files . Eric schmidt told maria last month he doesnt think its happening. Yeah. Again, if theyre asking for dated that because they have a warrant for something specific you know theres a lot of i guess, going to a court to ask for that information, the amount of time it takes. If someone, again, is just tapping into the data moving between networks there is no question to be asked. There is no need to seek permission to collect any specific data because you have access to all of it if, again, this is true. Thank you very much. Conspiracy theorists will wonder why we lost jonathan schindlers satellite. I think it just ran out at bottom of the half hour. Really . Really. Those things happen. We still have a half hour left in the trading session. Were up a whopping ten points on the dow. Blackberrys buyout deal falling apart along with the stock today. The ceo on his way out. Is it time for to you give up on your beloved blackberry and make your switch to another no, no. Well talk about it. Its the most hyped ipo since facebook. And it just got more expensive, too. Will it be worth the money . That allimportant question just ahead on twitter coming up. Looking at covered call strategies to generate income . With fidelitys options platform weve completely integrated every step of the process, making it easier to try filters and strategies. To get a list of equity options. Evaluate them with our p l calculator. And execute faster with our more intuitive trade ticket. Im greg stevens and i helped create fidelitys options platform. Its one more innovative reason serious investors are choosing fidelity. Now get 200 free trades when you open an account. So you can have a getaway from what you know. So you can be surprised by what you dont. Get two times the points on travel and dining at restaurants from chase sapphire preferred. So you can taste something that wakes up your soul. Chase sapphire preferred so you can. Following following a weekend, looking at the books blackberrys attempt to be taken over or go private, thats all been deleted. Right now down 16 . It was down 20 on the open this morning. And now whats happened . Theres another new plan new management coming in, trying to salvage the onetime mobile phone king. And it does not involve the current ceo. Josh lipton has the latest for us. Josh . Yeah, bill. Big news from blackberry today. Abandoning a buyout from fairfax financial and moving to ceo thorstein hines. They argue he was the fall guy for the companys troubles. He could get blamed for bad strij strategic decision. My suspicious is the structure was locked in place from years and years previous. Analysts now debating what comes next. Bchltd cg says, we could still see a socalled takeunder, meaning the Company Sells itself on the cheap below stock price. Others say we could see it break up, sell pieces like messaging services. Carly fiorina, isnt optimistic saying this is a company thats run out of time. Investors look forward to seeing who the new ceo will be and what the strategy will be. Josh, by the way, your blackberry is buzzing there. Did you see that . With blackberry removing its for sale sign and naming a new ceo, interim, at least, john chen, we ask, is it officially time for holdout consumers to finally make the switch to a brand new smartphone . Helping us answer that question is ronan from berryreview. Com and lena from tech crunch. Thank you for joining us. You still love your blackberry. You dont think consumers should jump . Absolutely not. How would they get service . I dont think its going to go out of service. Do you believe john chen, do you think they can turn it around . I dont know what parts they can turn around but certain parts of it can be turned around . I dont think the consumer smartphone part is going to turn around. This is a perfect example of too little too late. You see it in their sales. They had 1 billion loss in their last quarter because the smartphones arent selling . What do you think is going to happen . Lay out the scenario you foresee . I think that they talked about focusing on enterprise and focusing on software services. I dont know fitz goingif its going to work but thats the best way they can go. They would make a serious mistake if they tried to compete with apple and microsoft and others. You think they would abandon the consumer when it comes to selling blackberries . I mean i think we learned from steve jobs you know you cant make products that are just good enough. Thats not going to sell to the consumer. And blackberry has made products that are just good enough. They dont delight consumers. Shes basically saying, the company doesnt work for you what you want it to work for for consumers. I actually 100 agree with her in the sense i dont think its meant for the everyday consumer. They tried competing head to head with the iphone saying we can match the iphone feature by feature. The people who have their blackberries and still have them the five sitting out here are not choosing it for the same reason People Choose it for android or iphone. They choose it for productivity. For me and for a lot of us out here we choose the blackberry because its good a real keyboard. This is the new q10 that i have. But you have the new what is it the z30. Z30. There is no ski board. Absolutely no keyboard. This is clearly a consumer play. The companys confused. You think this is symptomatic of that . Yes. They dont know who they are. If they focus on keyboards and interface and security they would be doing better. But now the keyboard angle is no longer a good reason to use blackberry. As some analysts say, consumers are moving toward a touch environment, so you know blackberry has to figure out what they want. I think this is a perfect chance. This is their opportunity to jump into that space, figure out exactly what they want and actually articulate to customers, why they think theyll be viable. You think john chen can do it . I think he has a good chance. Watson knows who the company is he put this ceo in place to make that turnaround. They have 2. 6 billion in cash on the Balance Sheet. Burning through half a billion every month. They are getting new infusion some in debentures. This is more runway. The money isnt going to change anything. John chen says it will take six quarters to turn this company around. Can they do that . I agree with him 100 . If they focus on what they can do you also have to take into apple and microsoft are going after the enterprise as well. They are going to impeet with two pretty big giants. Youre seeing more and morning workers more workers bringing their phones to the enterprise. Those are iphones. Who quu go with . Im partial to the iphone . Whats your second choice. I have nothing against apple but i need the real keyboard. Come on. I think there are some good android phones out there that provide the keyboard experience and maybe youll find one that works for you. Theyre taking market share, for sure. Youve got to see them a a real competitor given market share gains. What about the virtual keyboard . You said youre getting used to it slowly. Yeah, im used to it. Its okay. Traitor. Its okay. Its not great. Thank you both. Nice to see you. John chen call us. Call us, john, please. No, better yet, text us. Even better. Heading toward the close, 20 minutes left in the trading session with the dow up 13 points. But a lot coming this week. The twitter ipo jobs numbers on friday, more earnings. And wall street is all atwitter over the big ipo on thursday. Well take a look at some other firsttime offerings this year to see how twitter measures up. You may be surprised. After the bell, fridays shooting at l. A. X. Has experts seven searching for Preventive Solutions and questioning how america deals with the mentally ill. Maria will go deep on that very difficult issue in the second hour of closing bell. Honestly, as much as i love this job, i plan to do a lot more. I needed a new laptop for my premed classes something that runs office and has a keyboard. But i wanted a tablet for me, for stuff like twitter and xbox so my downtime can be more like uptime. Thats why i got a windows 2 in 1 which does both works as a laptop and a tablet. So i can manage my crazy life and also have a life. [ beep ] gotta go. Opportunities arent always obvious. Sometimes they just drop in. 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. Weekdays are for rising to the challenge. Theyre the days to take care of business. When possibilities become reality. With centurylink as your trusted partner, our visionary Cloud Infrastructure and Global Broadband network free you to focus on what matters. With Custom Communications solutions and responsive dedicated support, we constantly evolve to meet your needs. Every day of the week. Centurylink® your link to whats next. In a world thats changing faster than ever we believe outshining the competition tomorrow requires challenging your Business Inside and out today. At cognizant we help forwardlooking Companies Run better and run different to give your customers every reason to keep looking for you. So if youre ready to see opportunities and see them through we say lets get to work. Because the future belongs to those who challenge the present. Production space around fracing. Northern oils continental resources, pioneer natural has been an animal all year, consol all up nicely. One i want to point out is exxonmobil. Theyve been dead money all year. Its been nowhere because its big oil and it cant grow cant replace its resources. Yet its been moving up. It was 85 a month ago. The reason is, finally in their last earnings report, a few days ago, they showed some growth in Oil Production after years of spending a fortune on capital x, now looks like theyre growing some. Not enough but enough for bulls to move out. A huge move for exxon. In the housing sector tri pointe is fascinating. W oechlt yerhaeuser shareholders own the company. Theyre bore error theyll have presence in all the big areas, cash cash, california, arizona, texas and never new england nevada. Wereyhaeuser will own 80 of this company when the deal goes through. It is the biggest ipo of the deal. Twitter could be the biggest ip off the year. Dominic chu has been looking at other ipos to see how twitter may fare to those. If you take a look at biggest ipos of the year we want to give you the three biggest oneday pops. First is Sprouts Farmers Market then potbelly and voxeljet. Very successful firstday ipos. They have hung onto a lot of gains since that first day. Here are the big stats in 2013. If you look at the number of ipos so far, 182. A fairly robust ipo market. Better than last year at this same point last year. If you take a look at some big stats. Average deal size, 234 million. Twitter obviously could be coming in a lot bigger than that, about 1. 75 billion. A hefty amount raised on average per deal. If you look at the grand scheme of performance, this is big, too, because the average return of that first day ipo is 18 . So across all of those companies, thats a very good sign if youre an ipo investor or could get in on that ipo price. Not many could. Remember insiders. 104 companies in that grew. 104 of those companies. While only 20 companies fell at least 5 in their first day of trading. So, so far bill a very robust ipo market. One that twitter could be adding to those performance stats later on this week. Back over to you. Dom, thank you very much. So, small to the downside is what art cashin is telling us. Getting all kinds of comments on our blackberry segment. One guy tells me, get over the keyboard. Heres one, one of our Staff Members just sent me something. Some Company Makes a protective device for the iphone that includes a keyboard, a physical keyboard. You can do that with the ipad as well. The ipad has that. But thats a little large compared to the blackberry. Thats a great idea. A protective case with a keyboard attached. 12 minutes left in the trading session here. The dow is still up ten points right now. Still to come on closing bell, the battle between steven cohns s. A. C. And federal prosecutors. Well have deal on the settlement, that might not settle anything. Sheila bair back with a lot more on closing bell. Res 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. The ocean gets warmer. The peruvian anchovy harvest suffers. It raises the price of fishmeal, cattle feed and beef. Bny mellon turns insights like these into powerful investment strategies. For a university endowment. It funds a marine biologist. Who studies the peruvian anchovy. Invested in the world. Bny mellon. Welcome back. Inside ten minutes. Weve had a pick up. The dow is up 15 points now. Its been quiet all day. Very quiet day. Joining us more kevin and matt. Gentlemen, good to see you. Welcome back. Thank you for joining us. So this week we got the ipo of twitter. Where are we in terms of catalysts for this market . Sentiments clearly back. Weve seen investors come back into the market. We have nice gains in average for the year with very little Earnings Growth. Bonds are up. The only remaining culprit for whats driving the market, investors are feeling better about their situation and willing to pay a higher price for stocks, compressing spreads. So the fact that im not at all surprised to see the ipo market is back along with that. This week really is backloaded, matt. The ipo. Twitter that will happen right here on thursday. And then the jobs number is out on friday. Yeah, we also have 14 other ipos. Its not just twitter, but twitter will get all the acclaim right now. Jobs number will be the headline again. The numbers theyre looking for is the lowest weve seen in almost two years, right around there. If we cant suppress this kind of number obviously the feds going to be, you know more inclined to keep backstopping this market. As long as that occurs, this market will keep going higher, it seems. Frustrating for some of the bears. For someone whos not expecting it to. What kind of conviction have you seen on the buy side . Were not seeing any conviction. Surprisingly after the government tried to shut us down, you know, i think that was more i thought wed see more coming out of that than we really are. Were seeing more of a meltup as we call it. Not too much conviction. Rotations out of certain sectors into certain other ones. Thats why we havent seen the huge move lower and seen a small meltdown. Which sectors do you think could take us to the next level . We tend to be value investors. Were seeing improvements in the economy, whether its final demand or Industrial Production are moving right direction. Take a look at Energy Stocks for example. That whole area is ripe for the picking. Technology a bunch of names in there are cheap. To pick up on what matt just said youve had a pretty big move in the markets but a lot of folks have not participated in this. You dont have that big convection rally because you just dont have that many people who have really participated in it. It doesnt feel good for those folks to have the market up 20 , 25 . What did you think of the poll we had out today . Cnbc ap poll that showed in the 18 to 34 age category i mean those are the prime users of twitter, 52 of those folks said they wouldnt buy shares of twitter on thursday. They still have facebook envy or nervous about what happened from that. They would rather wait for it to open, see if it pulls back and then buy it. You dont want to get egg on your face after this one after having it on the other one. The other one seemed like a sure bet. Are you predicting a lot, sort of, lower euphoria around it or a more cautious situation around this ipo . Obviously, after so oversubscribed and then they raised the price already, i wouldnt be surprised to see them do it yet again going into it, but weve seen in the past ipos with lower float have done remarkably well. The ones with more float havent fared so well. Well see how this comes out wednesday night. Mr. Value investor you said you like technology. What about a facebook, what about a twitter right now . Some of the ipos when you look at the ipo market have you to know them deeply. Im not ready to give an opinion on either one of those companies. You go back and look at ipos its tough to pick them. Many that fail majority of them tend to do poorly out of the gate. If you look for companies with a good Balance Sheet youll do better. Stay tuned and keep an eye out for those characteristics. I love hearing a value guy talk about technology. Its about time right . Things have changed. There you go. Gentlemen thank you for your time. Well come back with closing countdown. After the bell new cnbc poll finding young investors have a skoept cal outlook on whether or not investing in twitter is a good idea. Well bring you that. These are the folks that are using social media the most. Coming up, well tell you the poll results and more about that that you just heard from bill, as well as preview that ipo on thursday. [ imitating car engine ] thats mine. Thats mine. Thats mine. Come on, kyle. [ horn honks ] thats mine. Kyle. [ male announcer ] revenge is best served with 272 horses. Get the best offers of the season now. Lease this 2014 ats for around 299 a month with premium Care Maintenance included. [ bell ringing, applause ] five tech stocks with more than a 10 . Change in aftermarket trading. All the tech stocks with a market cap. Of at least 50 billion. Are up on the day. 12 lowvolume stocks. Breaking into 52week highs. Six upcoming earnings plays. That recently gapped up. [ male announcer ] now the world is your trading floor. Get realtime market scanning wherever you are with the mobile trader app. From td ameritrade. 90 second left. Lets show you the dow chart. Opened higher but sell offaround 11 00 this morning. Its around the time europe closed. That could have something to do with it. Were up 26 points on the close today. One of the features, of course blackberry, weve been talking about it all day, as fairfax financial withdrew its offer of 9 a share. So down sharply on the open this morning. And its just been going sideways since that time down about 16 . Ben willis a lot coming up this week. Youve got an ecb meepgt the twitter ipo, jobs number more earnings reports. The chinese, i think, is a very important story on what their third planetary iteration of how they want to direct their economic growth. Its hard to understand. May not be immediately discernible but the ecb is definitely the talk for traders today. You think theyre going to cut rates on thursday . I dont know if they will but its definitely have an effect on how markets are trading. Currencies are moving the dollar versus the euro around. You like this market if the jobs number doesnt come in very strong, is that good for stocks . Figuring that the feds not the feds not likely to taper. According to mr. Bull ard on cnbc today, im cautious not putting money to work using Options Strategy to straddle to buy on the put or take some premium. Very good. Thank you, sir. That will do it for the first hour of the closing bell. Dow finishing near the highs of the session. Gain of about 23 points. Stay tuned for the second hour of the closing bell with maria bartiromo. Ill see you tomorrow. It is 4 00 on wall street. Do you know where your money is . Hi everybody, welcome back to the closing bell. Im maria bartiromo. This market modestly higher as the dow and s p 500 inch back toward record highs. Some money moving into equities pushing the dow up at 25 points at the close. 15,640. Nasdaq picking up Ground Technology doing better ahead of the big twitter ipo on thursday. Nasdaq with 3936. S p 500 higher