The fed. Dont listen to what they are saying, just Pay Attention to what they are doing. But now, paul is turning that upside down and taking a different tack. We will talk with him about that coming up. And would you mcbrunch . Mcdonalds issing an ling to get into the brunch business. Yeah. Really. We are not kidding here. Is this the type of move that could turn that stock around finally . It is the underperformer today, the nasdaq is off about four points. S p down one point to 1994. Some of the other signals from financial markets, bill, from the strong dollar to Inflation Expectations to whats happening on the yield kur that have has people talking ahead of that fed meeting next week. Let us talk about all that coming up in our Closing Bell Exchange today. We have heather hughes, Peter Anderson from Congress Wealth management, jim lowell from adviser investment he is and rob morgan from b to b associates. Peter anderson, month of september, meandering here so much, whatted . What is going on with the market, do you think . I think we are all coming back from long vacation breaks, that isnt the first thing. We are waiting for the next fed meaning and see if she will take the terminology out there, specifically the phrase, for a considerable time. It thats taken out of there a strong signal Interest Rates, she is going to raise Interest Rates probably earlier that most of us think and im in that camp. I think the rates will be raised the First Quarter of next year and im absolutely fine with that. I think the stock market is ready. I think the bond market is ready and i look forward to those reading those minutes next week. That fed meeting is next week, by the way and you are talking about what they have been saying the last several months, keep Interest Rates the record lows for a considerable period of time and thinking maybe take that last phrase out. Here is the interesting thing, peter, if the u. S. Were a vacuum, could you see the case to be made for perhaps acting sooner than markets or the people generally expected here but rob morgan, the fact remains the u. S. Dollar has strengthened considerably. On a global base circumstance Inflation Expectations are moving lower and Alan Greenspan, when we asked him yesterday on the program is what that means, in affect there has been a tight thing of Monetary Policy already here. So, how much do you think the fed is willing to risk being a little bit more, aggressive when, frankly, the landscape out there is looking a little bit shaky . Well, im in peters camp, i think they are gonna raise sooner rather than later and it is gonna cause a stronger dollar and i think the investment implications of that one thing that one area we really like is the small cap space, the strengthening dollar, thats certainly an area to look at. Also, really hurts the commodities, but i think the fed it seems like our economy is gaining some escape velocity here in spite of the last jobs report, we had six great jobs reports before that one. Heather hughes, speaking of energy, oil as we know, lower, today notwithstanding that higher dollar pushed oil lower, good or bad . Good for consumers, what about for Energy Stocks themselves . Hopefully, it put a few more dollars in the consumers pocket, you are right. Crude is at lowest level since 2010, i believe, so that may also be a positive data point along with couple that with auto sales, 1747 million i think it was. Right. The over 10 since the last period in 2013 that we have seen in auto sales as well. King dollar, strong dollar, you alluded to, we are seeing from europe and japan, you know yaupt tatetive easing is only in the beginning stages in terms of stimulus in other countries, the british pound, the your rocker the japanese yen are all in oversold territory right now, you are seeing a rotation to the u. S. Dollar, we have rallied nearly 6 from the july 1, 2014 lows on king dollar and perhaps its even a shortterm overbought companies in that u. S. Dollar right now. True. You know, jim, if all this were happening and the market, the general public, were starting to see and anticipate higher inflation, i could understand the next steps, but the opposite seems to be happening here, theres of a commodity price more or less crash thats going on and Inflation Expectations are dropping a little bit. So, what does that all mean to you . Well, they are low for an are, Inflation Expectations, that is, one is the global market, everyone is just talking about, whether you look to the eurozone or china, you are seeing the fending off of either slowing growth in china or our expectations are for a mild and recoverable recession in europe. So the Global Committee is not firing on all cylinders, even though our economy is. Thats one of the reasons why we definitely like u. S. Multinational battleship Balance Sheet megacap stocks. We think they will be able to bounce back, the Global Committee does, more cash in their covers than local governments. Jim, i hear your point on the u. S. Market he is and just from a mutual fund perspective, we are seeing flows internationally, some investors may see the u. S. As overvalued but on a threeyear annualized return basis, do you see International Markets up 17 up 10 versus the u. S. Markets up only up 17 , beating International Markets. So i understand that youre sake the u. S. Still has room to run. I wonder when youre looking at europe and japan and embarking on quantitative easing in the beginning stages cork that help propel their markets further as we withdraw some of this stimulus . I absolutely think it will. We are a big fan of European Growth stocks, in particular, because they underperformed the overall european forces, not just across the borkros cross t but step in into big blue chiplike eurozone stocks at a steep discount on the gross side of their fence and for longterm investors, that makes considerable sense when fear is onkrcross the boards. Assume they take the key phrase out, keep rates low for a prolonged period of time, what do you think the markets response will be to that . Do you think they will accept that . Is there quantitative easing fatigue right now for the markets or will that spook this market, do you think . Yeah, its been a rather cranky market whenever theres been messages like that. So my prediction is i think that we will take it on the chip. The equity market probably will trade off and im actually expecting that to happen. And i think its just because people are not truly understanding that we do have to raise rates in response to a stronger economy, okay . And what will happen is a buying opportunity, because im looking at stocks now and im thinking if that does happen, if she does signal that she is gonna raise rates and remember, only probably gonna be 25 basis points, tiny really, but that is a change in trend and people will probably get very anxious about that, but the bottom line is that is a good thing and if you can buy on the dips, i think its fantastic. We debated this in the past. Inflation, i still think a little inflation is good for both stocks and bonds and i think we will wake up to that observation come early next year. Peter, just hang on, health her, before we go, i want to get you to address this point, as you said, a little inflation is a good thing, a little bit more than we have been seeing is probably what the fed wants but it doesnt seem to be the scenario thats evolving right now. So, what you know, in other words, all im saying is that if i were the fed next week, given whats happening with the strengthening dollar, the commodity price declines we are seeing, could that be enough to get them to err on the side of caution despite the home tim they are talking about . I dont think so, kelly, the feather what they are trying to achieve is to get ahead of that curve and every fed chair wants to be credited with seeing this earlier than everybody else, so its anticipation of that. Its a very, very difficult thing to do i think what they are going to do is try to raise the rate ahead of a high certainty that inflation is eventually going to happen and thats where the trickiness, the subtlety comes into play. Fib nish us up, heather what were you gonna say . April 2010, qe 1 ended, markets declined 16 . In july of 2011, qe 2 ended, markets declined 19 . So, perhaps thats pull back that peter is referring and alluding to. We will see. Maybe we will know by next week whats gonna happen. Thank you, folks, proo esht it very much. Thanks, bill. 50 minutes left in the trading session, it is a meandering market, lets all acknowledge what we know, today is the anniversary of 9 11 and a lot of traders, especially here at the there are of the New York Stock Exchange who were there in 2001 are thinking about that a lot today. Its been a big distraction and a big thought for everybody today. Understandably. Also weighing today, weekly jobless claims, one of the best indicators out there for the stock market, unexpectedly rising to a twomonth high. Is this a red flag for the market and the committee . Pimcos Paul Mccauley will weigh in later. Also, going to take a look at how americas Education System may look 25 years from now. Former education secretary, margaret peoplings and education reform trailblazer, michelle rewir re, here to talk about t mickey ds hoping that elusive meal between breakfast and lunch could help slumping sales. So investors mcbet on it . Plus your chance to know whether you want to mcbrunch is coming up. Guys youre not gonna believe this watch this. Sam always gives you the good news in person, bad news in email. Good news fedex has flat rate shipping. Its called fedex one rate. And its affordable. Sounds great. [ cell phone typing ] [ typing continues ] [ whoosh ] [ cell phones buzz, chirp ] and we have to work the weekend. Great. More good news its friday woo [ male announcer ] ship a pak via Fedex Express saver® for as low as 7. 50. [ male announcer ] ship a pak via Fedex Express saver® big day . Ah, the usual. Moved some new cars. Hauled a bunch of steel. Kept the supermarket shelves stocked. Made sure everyone got their latest gadgets. Whats up for the next shift . Ah, nothing much. Just keeping the lights on. laugh nice. Doing the big things that move an economy. See you tomorrow, mac. See you tomorrow, sam. Just another day at olk southern. For over 60,000 extra curricular activities help provide a sense of identity and a path to success. Joining the soccer team. Getting help with math. Going to prom. I want to learn to swim. Its hard to feel normal, when you cant do the normal things. To help, sleep train is collecting donations for the extra activities that, for most kids, are a normal part of growing up. Not everyone can be a foster parent. But anyone can help a foster child. To many americans, september marks the beginning of a school year around put the spotlight on americas educational system. Part of our yearlong cnbc 25 initiative, celebrity our 25th anniversary, looking at how things may be 25 years in the future and looking with our Education System. With us is Sharon Epperson and two guests, former education secretary, Margaret Spellings and former d. C. Chancellor, michelle rhee. It is all yours. Im looking at the situation of the future of education and where the k through 12 classrooms are going to be in the future and very interested to hear from you, ms. Spellings, about where you see the schools going and whether you think this individualized learning approach that some schools are already engaged in will be the wave of the future. Well, i certainly hope so and i think it has the potential to, just as personalization and customization and competition has changed really every area of american life, whether its banking or ordering your coffee irk we will see some of that in education, i hope. And its about time. You know, we will see students move through their academic curriculum at their own pace, not determined strictly by their able, but really more by their competency and their proficiency. We will see teachers be able to meet students where they are because we will have more rapid feedback on data and where the child is and we will also have customized curriculum products that you will help meet the individual needs of the students, so i think its going to be terrific and phone sex really great and we are seeing lot of t the issue is about trying it to get the funding and the training for teachers necessary to see that type of individualized learning is one many critics say will take us a long time and perhaps more than 25 years to get there. What are some of the obstacles perhaps in getting the community to accept this in terms of getting the proper training and funding for our schools and our School Districts . Well, you know, i am sure michelle will weigh in on this i think this michelle . Yeah, i think we have a major challenge on our hands right now because in this country over the last two to three decades, weve more than doubled and almost tripled the amount of money that we are spending per child in Public Education. And yet, the results have really stagna stagnated, we havent created an environment where we have made a case for an increase in funding for Public Education quite yet. I think what we have got to do is bring more transparency into the situation. We have to understand very clearly what the return on investment is of what we are what we are spending those dollars on and then once we see that i think we will be able to make a case for more dollars in education, particularly for professional development for teachers. And michelle, if i cork its kelly evans here, jumped in and ask you a question, i know you have stepped down from studentsfirst in the last month or so. An interesting piece, they take you to tax and perhaps margaret weigh in on this as well and they say, look, the core of the problem is Child Poverty and a lot of this focused on issues and measurements and metrics with the primary Education System overlooks this core problem and that this has been more of a distraction than a help in getting to the root of the issue. Look, i think that there are lots of people thought who say we cant fix Public Schools until we fix the problem of poverty in this country and i actually think its the exact opposite. We have to create a Public School system where every child has an equal opportunity at success if we are going to break the cycles of poverty in this country. So is it more difficult to educate children who are living in poverty . Absolutely. We need to acknowledge that and put the resources toward ensuring that we are giving kids the resources and supports they need but it cant be an excuse for why kids arent achieving. Yeah, i acompletely agree with that absolutely, and hello to my friend michelle. The other thing is it cant be an excuse for educators to not meet the needs of these children. We have to make sure no matter the condition of the child not to interrupt, but the criticism is not that we should say well, these kids are born into poverty and so we shouldnt expect more. No, no, no. What they are saying is the resources in this country should be devoted toward trying to improve the Poverty Level and for these families, for these situations, as opposed to thinking that education itself is the problem. You know, in my many decades in the field, theres never enough money. I mean, thats sort of a hollow argument. Yeah, sure we need more resources for kids but, we have to have our eye on the ball with results for foreign minority students, above all. And the reality is that we have to we have to look at this in terms of what do we think is the best way that we can break the cycles of generational poverty in this country . And, you know, you can have social programs, you have have food banks, all of those things that address the symptoms, but at the root cause of it is how can we ensure that the next generation of kids who are growing up in poverty can live different lives and the only way thats gonna happen is they get a highquality education. We all know College Costs too much. And we are here to talk about what we see education looking like 24 years down the road, 25 years down the road. How does this play out, madam secretary . Are people just gonna say im not going to college because it costs too much, i cant afford it right now . Will they go elsewhere to get the education that they need or what happens to the College Industry itself in this country . What do you think . How does it i think we are moving away from pedigree and more toward competency as determined by employers. Its not going to be enough for a university to simply present you a piece of paper and say youre ready for the work forces. I think employers are challenging those of us in education to be able to have students demonstrate those skills and competencies that they can put to work right away. So, thats why we are seeing things like badging and assessments and competencybased models that really, you know, are your portfolio that prove you have the skills necessary to work on day one. Technology is helping us do that. Some of the things that we are talking about in k 12, these adaptive models, will help us in higher ed, too, but the employer is gonna drive whether this whether the student is capable of being employed or not. So, is that, do you think, going to perhaps do away with some of the universities that we are seeing right now . If youre not able, if youre a tuitionbased university, you document have th