Incredible run for the market this year and also his take on this. A new highly polished bitcoin magazine. There it is. Being sent to homes across the nation. Remember, mr. Schwab invented marketing to Retail Investors. Well want to hear his reaction to this one. We certainly will. Huge news out of General Motors, tapping mary berra as new ceo. When will a major wall street bank do the same . Well take a look into that. Right now heres whats happening in the markets as we head into the final hour of the day. The dow losing some ground here, trying to hang onto that 16,000 mark but down about 26 points. The s p is giving up four. The nasdaq is down by three points as of now. 4,065 is the level there. Joining us in our Closing Bell Exchange is amy wu, jerry from platinum partners, mike santoli, and drew from hightower, and rick santelli. As we mentioned, drew nordlick to you first, whats going to take police between now and the end of the year . Scott, we expect to see a santa claus rally through the end of the year when the fed does not taper next week. Over the past 30 years the month of december has averaged 1. 9 gain and been positive 80 of the time. From there we expect to see an early january rally rallied by new followed by equities and followed by earnings as Companies Report those to follow. U. S. Markets have outperformed most of the markets throughout the course of this year. While Monetary Policy is expected to remain supportive over the intermediate term, we would use any downside volatility as opportunity to deploy new capital into domestic equities. That was pretty well rehearsed. Amy wu, what about you . We look at these markets. We had an incredible run as he was saying here in the u. S. You know, going into next year, if its all about earnings or at least dependent on continued growth, what kind of growth are you looking at . Hi, kelly. Usually im thinking about hedges, helping people protect their portfolios. Were seeing none of that demand. Were seeing none of that anxiety. The options market, too, is all about upside. We keep seeing s p call spreads trade. We keep seeing sector upside trade. In terms of what i can see from term structure from implied volatility, it seems like all signs say clear. We dont see a taper factored in until the march time frame. Drew certainly seems convinced theres going to be no tapering in december. Steve liesman, who has pretty good sources, would have you believer otherwise. Hes reporting today its more likely than not you will see tapering at the december meeting next week. What happens if there is, in fact, tapering . What happens to stocks . I think they get cloperred. We see a lot of volatility for next year with possible range on the s p with anywhere from 15, 25 on the down side to 1975 on the upside. I think you see the downward move before upward. Why do stocks get clobbered on that . Any time weave seen fed tightening, even with volatility, certainly hasnt been the end of the rally. Because people are underestimating the amount of nearly fiveyear rally we have thats directly attributable to the unprecedented liquidity the fed pumped into the market. When that safety net starts slackening, people will take their massive profits they generated and say its time to take profits and that selling will drive the market down. Rick santelli, jack bogle was talking to kelly yesterday. Said he believed the taper was already priced in to both stock and bond markets. Im wondering what you think, rick, as to whether any of it is priced in anywhere. I would say no. I hate to disagree with such an icon but my opinion is no. As a matter of fact, our last guest has it nailed. Since 1979 when i first had a membership at cme, ive been through a lot of cycles, tightening and easing. What were going through now due to qe, if you go to last fed meeting, Interest Rates have moved higher. Look at s p 500 in that same time period. Doesnt look like its priced in to me. Im so glad you brought up that Steve Liesman sounds convinced and he does have good sources. Makes me a little nervous. But i dont like to have a guide walking me through what the fed will or wont do. I like it to be apparent if anybody does their homework, which is exactly what the problem is. Its not a question of transparency. Its a question of what are they going to do next . Have they decided . How can they communicate that . Maybe steves part of that process. Just looking at the markets, i dont think it is priced in. Especially in equities. I dont think the fixed income is priced in, its leading the head, ahead of the fed. Its amazing to see it back to 2. 8 today. Rick was indicating theres something around. Theres something about the mechanism. I dont think anybody can pinpoint exactly how much of this equity market rally and the real calm and strength and credit markets has been because of this policy. I do think because theres this great perception thats played a huge role, that alone could mean you have this noisy adjustment period once you get evidence of, in fact, the taper. Could stock prices at 1800 at s p price in . Could that be compatible with gentle and well telegraphed taper . Sure. I dont think the market is necessarily going to assume thats the way it goes. To me i see the market as being ragged here. Its going to be supply coming out with some offerings later in the week and small caps are lagging. It looks like its stalled out and resting for a while. By the way, s p is only up less than 2 since october 29th. Seems like were cooking new highs but its been settling back and going sideways. What about the idea of end of crisis trade weve been talking about selloff today on nbc. You can pick whether its the government getting out of General Motors, europe is stabilizing, stocks are near alltime highs and the taper is coming soon whether we like it or not. What about the idea that the end of the crisis trade is about to take hold . The end of the crisis is s p up. Now were recognizing it, acknowledging it. I did a piece like october of 2012 trying to timidly suggest end of uncertainty is coming to an end. It didnt seem obvious at the time. I feel like at this point gold crashed, everything has fallen into place. Thats why you need an earning second wind in 2014 to support what the market has given you this year. Amy, one of the movers weve seen, its interesting, as these crosscurrents we try to figure out whether volatility will settle back into that years yearlong low we saw prior to the last week or so. What do you think happens here with the vix in volatility and stocks you look out into next year. Its picked up a little bit but a lot . As an option strategist i would love it to price where it is now. As per bbernanke yellen, we wil in higher volatility regime. The other thing is i was just in europe for ten days visiting clients. Everyone is so bullish on the u. S. I see so many incremental buyers coming in if we get a correction i dont know if has that much room, unfortunately. Thanks to all of you. Stocks are cooling off today but it is nothing compared to the cold and wintry weather slamming the east coast today. Its not that cold but definitely snowy. Were feeling it at cnbc mothership. Jackie outside. Wow, i have to say, it actually looks pretty there. Whats happening with the weather . Good afternoon. The snow just picked up as weve been standing here but its certainly cooled down throughout the day. This is the first significant snowstorm weve seen on winter coast and accumulations in Bergen County are expected to be between 3 to 6 inches. This storm wasnt necessarily a surprise but it did wreak a little havoc on the morning commute. Icery and slippery conditions on the road. Things are getting better. Airport travel, let me tell you whats happening at newark airport. Jfk, an hour and 15 minutes. Laguardia, a little more than an hour at this point. According to flightaware. Com. Were also looking at inclament weather across the country and flightaware is saying cancellations across the country right now are over 1650 flights. That is fairly significant. In terms of the major crossings, we are seeing bridges and tunnels. There were delays on them previously but Port Authority lifted those delays. Hopefully it wont be so bad on the way home as it was on the way in. Back to you guys. We hope everyone travels safe. Yeah, for sure. Jackie, thanks so much. 50 minutes to go before we close it up. Dow and s p are in negative territory. Dow, 15992. Weve given up 16,000. Twitter a big story as it pushes past 50 mark. Its more than doubled since the ipo price after yesterdays big run as well. Whats behind this move . Will it keep going . Coming up well get a twitter stock brawl. Bitcoin meg getting sent to thousands of americans across the country. Whos behind this and is this a good strategy for making the currency mainstream or will some Retail Investors just end up getting burned . Well talk to chuck, as in Charles Schwab. Hell weigh in on bitcoin. The markets and a whole lot more coming up in a bit. [ male announcer ] how can power consumption in china, impact wool exports from new zealand, textile production in spain, and the use of medical technology in the u. S. . At t. Rowe price, we understand the connections of a complex, global economy. Its just one reason over 70 of our mutual funds beat their 10year lipper average. T. Rowe price. Invest with confidence. Request a prospectus or summary prospectus with investment information, risks, fees and expenses to read and consider carefully before investing. A confident retirement. Those dreams, theres just no way were going to let them die. Like they helped millions of others. By listening. Planning. Working one on one. Thats what Ameriprise Financial does. Thats what they can do with you. Thats how ameriprise puts more within reach. Welcome back. Dominic chu breaking down the stocks drag down the market. Starbucks which is moving lower after Itg Investment Research said dated that showed the chains momentum may have slowed this quarter. Tough day for lumber liquidator, providing slower than expected Profit Guidance. Midpoint of companys Profit Guidance was below wall street consensus estimates. On the flipside, gold mining stocks. As gold prices soared on perception reported by Steve Liesman the fed might begin tapering later on this month. A good day for twitter as well. Shares hit an alltime high on positive analyses out of its new advertising product called tailored audiences. Twitter has doubled in price since its ipo about a month ago. Bathank you. With the stock market at these levels, should you be adding twitter 20 your portfolio . Rob sanderson says, yes, buy that stock. Brian evans is warning the valuation is bloated. Good to have you both with us. Rob, its sort of undeniable the valuation is a little stretched, right . Very rich stock, no doubt about it. Why argue to buy it . It speaks so the to the size. Its a top line acceleration story and openended. So long as were beating on the top end and sticky audience, its going to continue to be a rich stock. Brian, youre more cautious on valuation. It seems like valuation has been the least relevant argument for buying or selling any of these stocks year to date. Well, i think this stock is trading at 50 times Gross Revenue right now. Even with 70 projected annual revenue growth, it would still be trading at four times revenue. Weve seen this kind of thing play out before with the dotcom time period where we were buying Companies Based upon top line growth. But when it quocomes down to if bottom line growth is going to sustain the stock. Rob, dont you want to see this company put up some numbers . Show me before you say buy me . I mean, they havent had an Earnings Report yet. Dont you to want see that . Thats going to be an important factor for us. Were flying a little blind. Weve seen this story before. Multiple years of top line. Grows into earnings power. Were looking at our valuation in the near term. We missed these emerging growth stories. Have you to look out further, see what it looks like at scale and what kind of earning power can drive up there in a few years. Brian, isnt there something to be said for the power of twitter, analytics, readvertising, the kind of things that propelled facebook to be as successful. This is something that could be a huge growth source for them. Yeah, its already there, though. Market capitalization. This has already had growth projected into the share price currently. So when thats the occasion im reticent to put money into it. Would i put my moms money into it . Absolutely not at this price. Where do you think the price should be or what level would you feel comfortable telling your mom to buy it. I would tell her 15, 20 bucks a share based on tenyear projected cash flow model. Why do you think this stock has had this move . It got below 40. Everybody was a bit concerned about it. All of a sudden you wake up and you see the stock back north of 50 bucks. Whats driving it . Is it technical . Is it big money coming into the name . Hedge funds, perhaps, taking a look at it . What is it . I think its greed, frankly. I think its shortterm profit making. Momentum investors like investments like this. Im more of a longterm. I have an etf on the market thats valuation based on based on fiveyear projections have earnings not fivemonth poe men item plays. In the short term they have been correct on the momentum thing. If im going to hold something for a year or more, twitter is not what im buying right now. There are plenty of other good buys out there. Rob, do you have an opinion why this stock has moved so fast over the last few days . I think its recognition of the openended opportunity. Audiences is not the most interesting. I think cards and big pools of money, takes them into lead generation, video, successful formats going to drive a lot of growth mere. Real quick, rob. You heard brian say 15 or 20 a share. How much further could it go from here . I think were looking at a 90 billion market cap in three to five years. And that implies what for the share price today . Thats a triple from here. Wow. So, weve got a difference in magnitude between 15 and 150 a share. Incredible stuff. Thank you for joining us, sharing your views on that one. Thank you. Certainly puts 52 in perspective. Yes, it does. We have about 40 minutes left to go into the home stretch on this tuesday. The dow is giving up about 37 points. The s p 500 weaker by about four. Still above 1800. The nasdaq down about four. Lululemon ceo stepping down after comments he made. The auto industry, first ever female ceo after mary berra has been tapped to replace dan erickson. Will discuss why that is and how much longer it will be the case. Tdd 18003452550 trading inspires your life. Tdd 18003452550 life inspires your trading. Tdd 18003452550 where others see fads. Tdd 18003452550. You see opportunities. Tdd 18003452550 at schwab, were here to help tdd 18003452550 turn inspiration into action. Tdd 18003452550 we have intuitive platforms tdd 18003452550 to help you discover whats trending. Tdd 18003452550 and seasoned market experts to help sharpen your instincts. Tdd 18003452550 so you can take charge tdd 18003452550 of your trading. Maestro of project management. Baron of the buildout. You need a permit. To be this awesome. And you. Rent from national. Because only national lets you choose any car in the aisle. And go. You can even take a fullsize or above, and still pay the midsize price. aaron purrrfect. vo meeeow, business pro. Meeeow. Go national. Go like a pro. Yep. Got all the cozies. [ grandma ] with new fedex one rate, i could fill a box and ship it for one flat rate. So i knit until it was full. Youd be crazy not to. Is that nana . [ male announcer ] fedex one rate. Simple, flat rate shipping with the reliability of fedex. [ male announcer ] this december, experience the gift of exacting precision and some of the best offers of the year [ ding ] at the lexus december to remember sales event. This is the pursuit of perfection. Blaming customers for product failure, not the best Business Strategy but what ended up causing lululemon chairman chip wilson to step down. Courtney reagan on more what has rocked the yoga world. Finally lululemon announces a new ceo. After Christine Day said she would retire, lululemon names Laurent Potdevin as the new ceo. Its not just the ceo seat changing, chip wilson will remain on the board. He made the suggestion womens bodies may have been the problem to the seethrough pants that led to the recall of 72 plus yoga pants. That group appears to have forgiven the brand itself for the debacle but wall street still has questions about lulu. Potdevin isnt well known. He has spent 15 years as private snowboard Company Burton and also toms shoes. Pot dechlt vin has an operational background but may not know retail which is the opposite of what happened with Christine Day and her background. Scott and kelly . Do we know if they had lost any sort of great number of business to an athletica or nike or under armour as a result of any of the issues that have gone on over the past 12 to 18 months . Good news is lululemon is releasing earnings on thursday. Bad news is we dont know the fallout and how we can correlate that to what might have happened with the shift in market share. We know their growth is slowing a bit but customers are resilient, forgiving the retailer because it came out and said, hey, we made a mistake, recalled the pants. Whether wall street believes it or not, at least the customer has been pretty loyal. They keep coming back and spending an awful lot of money on that yoga wear. Lulu is one of the companies you mentioned was having trouble with succession, finding that next ceo. Does that imply this choice investors should read as one thats a little more risky, perhaps . Its hard to say. We havent seen a huge reaction in the stock price all day long. It gave up some ground. I think frankly wall street analysts arent sure. We dont know much about him. Yes, he came from a sports background, but the companies were privately held. Who knows how hell deal with a very publicly traded retailer like a lululemon. He knows operations. May not know the retail side. His name wasnt one we knew about, so kind of a surprise. Its hard to say. The jury appears to be a little out, at least on wall street with revi